23 Dec PERHAPS A QUIET WEEK?
Equities traded higher on quadruple witching hour. The yield curve also steepened and is at its steepest level in 15 months underscoring how recession worries have receded.
The next question at hand will monetary policy assumptions be again questioned? The FOMC has continually stated it will rely upon the data to conduct monetary policy. If so, how will equities respond?
As noted many times interest rates are the largest variable of valuation formulas thus suggesting equity volatility should increase. The question at hand will the revenue increase, the result of greater economic activity, offset the ill effects of rising rates?
Radically changing topics, this is Christmas week. Regardless of one’s beliefs, please take the spirit of the season to treat people the way that you want to be treated. If all acted this way, the results would be incredible. We live in a hate filled vindictive culture where everyone is claiming victimhood, a culture where hatred and animosity spills out of almost every smart phone.
My challenge to all is to declare oneself a victor not a victim, a mindset where genuine care and sincerity is overly abundant.
Yes it is a big request but we live in a big world.
Last night the foreign markets were mixed. London was up 0.51%, Paris up 0.19% and Frankfurt down 0.13%. China was down 1.40%, Japan up 0.02% and Hang Sang up 0.13%.
The Dow should open quiet. The 10-year is unchanged at 1.92%.
MERRY CHRISTMAS AND HAPPY HOLIDAYS