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STOCKS DOWN WITH HEADLINES

Stocks sank at the open, as is their custom this month. The Dow is currently down 367 pts and the SPX is down 1.5%. Energy is the worst performing sector, down 3.5% (see below). Most other sectors are down about 1% except the defensives (utilities, consumer staples, real estate). VIX Index June futures are trading up around 17, but that’s not considered elevated. There’s no real panic in the market, just a slow bleed on trade headlines. European stock markets closed down about 1.5% today and Asia was uniformly down overnight. The bond market is catching a bid—especially safe-haven Treasury bonds. The 10-year Treasury yield is down to 2.32%, the lowest level since November 2017.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 22, 2017

Stocks opened slightly lower again today (Dow -29 pts; SPX flat).  Utilities, real estate and healthcare are leading to the downside. Telecoms, industrials and energy are in the green, however, continuing a recent trend. The VIX Index still isn’t registering much fear, trading just under 10. European markets are poised to close slightly higher today. And by the way, just about all the major European stock indexes are up more this year than the SPX or Dow. The dollar is weaker again vs. a basket of foreign currencies, and is down about 10% so far this year. That doesn’t really fit well with the Fed’s expectations for rising interest rates over the next year. In other words, if the economy is improving and interest rates are rising, you would expect a stronger dollar. Part of the reason for the weaker dollar is that foreign economies are faring better this year. Bonds are trading a bit higher today after a two-week drubbing. The 5- and 10-year Treasury yields edged back down to 1.87% and 2.26%, respectively. But it really does look like the 10-year yield will move up to test resistance at 2.39% soon. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.