Commentary

Vaccine can be a powerful word. It’s worth 14 points in Scrabble (42 on a triple word square) and, last week, it was worth a whole lot more than that to financial markets.

It’s said markets hate uncertainty, but that wasn’t the case last week. Despite tremendous uncertainty about the outcome of the United States election, major domestic and international stock indices moved higher and the CBOE Volatility Index, better known as Wall Street’s fear gauge, moved 35 percent lower. Ben Levisohn of Barron’s reported: “By all accounts, it should […]

Last week, financial markets and economic data told very different stories.

Reviewing economic data is a bit like looking in a rearview mirror. Typically, it offers information about what is behind us.

10.26.2020 The Markets… Stimulus talks led investors in a merry dance last week. Economic data didn’t provide a clear picture either

It was a turbulent week for investors.

Waves of positive and negative news buffeted financial markets last week:

The Markets
Last week, the third quarter of 2020 came to an end – and the fourth quarter delivered a doozy of an October surprise

Investors weren’t happy with central banks last week.
After the Federal Open Market Committee (FOMC) meeting, Federal Reserve Chair Jerome Powell confirmed the economy is recovering more quickly than anticipated:

Last week, the Nasdaq Composite Index set another record.
So far, 2020 has been memorable for many reasons, not the least of which is the incredible speed at which some events have been occurring in financial markets.

It was difficult to pinpoint a specific reason for the market’s retreat. Experts offered a litany of possibilities that included…