There have been some violent market moves recently, but it’s important for investors to keep things in perspective.
Headlines have been focused on tariffs, trade and the FAANG stocks; but underneath the surface may be a more important shift toward tighter financial conditions.
The stock market environment has changed since January, making it more challenging but also creating potential opportunities.
Stocks erupted in a “tariffs tantrum” last week only to reverse course on hopes the U.S.-initiated trade spat won’t turn into a trade war.
Goldilocks reappeared last week with an extremely strong jobs report that gave stocks another reason to cheer the ninth birthday of the bull market.
Stock market volatility appears to be largely a consequence of the economic environment returning to a more “normal” status.
Every month in the immediate aftermath of the release of The Conference Board Leading Economic Index (LEI) I put together a small deck together for Schwab’s Operating Committee highlighting the overall data and some of the key takeaways.
In a record-breaking sprint from all-time highs to an “official” correction, the “short vol” trade unwinding exacerbates an initially fundamentals-driven decline.
Volatility has spiked, jolting investors out of complacency, but that doesn’t mean any dramatic action is needed.
In what was Janet Yellen’s final meeting as Fed Chair, rates were left unchanged, but the outlook for inflation was elevated in the statement.