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%.



The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. The material provided in Daily Market Commentaries or on this website should be used for informational purposes only and in no way should be relied upon for financial advice. Please be sure to consult your own financial advisor when making decisions regarding your financial management. Members of FINRA and SIPC, Capitol Securities Management is a privately owned full-service retail brokerage and investment advisory firm headquartered in Richmond, Virginia. For nearly 30 years, we have been serving the needs of our investors. Today, more than 200 Capitol Securities Management investment professionals and support staff serve approximately 18,000 customer accounts from Southern Florida to the New England coast.