Market Volatility

Investor sentiment is one key to shorter-term market swings; with euphoria preceding September’s and late-November’s pullbacks; but better conditions in place … for now.

Sentiment has been a problem; higher yields was the catalyst for a bit of a reset.

As quickly as it soared to the moon, GameStop came back down to earth; but the lessons learned are key to turning day trading speculators into longer-term investors.

As a review of the year that was, today’s report analyzes and dissects the nature of the K-shaped recovery in both the economy and stock market.

December brought the first payrolls decline since last April; with leisure/hospitality—and women—bearing the brunt of the weakness. Expect more economic “scarring” to come.

The market’s tenor changed in early September, when the “rotation era” began; with the benefit of better breadth, but the risk of euphoric sentiment.

Recent positive COVID-19 vaccine may represent a light at the end of the tunnel; but the resurgent virus means we’re still in the darkest part of the tunnel.

With investors already on edge regarding election uncertainty, an “October surprise” arrives yet again. Can history provide some guidance on how elections impact markets?