The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Slow Monday.
The S&P opened the day up about 10 points and climbed 20 more early. News was unremarkable although the US/Iran noises continue to confuse and suggest further bumps as it progresses. US yields climbed across the curve, reflecting that market’s concern over the hawkish Fed signals of last week. Perhaps the climbing yields pressured the US large caps, resulting in the S&P 500 rolling over after 10:10 AM and going negative before 10:30 AM. The index quietly bounced along for the session, down about 30 points and drawing little attention to itself.
The death of former Fed Chair Alan Greenspan was a notable financial news item, although it had no impact on trading. As a 20-year Chair, he certainly earned his spot in US financial history. Much was said, written, and reported about his life and legacy today. He was certainly an interesting figure in markets and was much appreciated for his time at the helm of the Fed.
His passing, led to many conversations and editorials about the current state of the Fed, specifically the new Fed Chair, Kevin Warsh, and whether we are at the start of a new era in the Fed. That all remains to be seen but anyone closely involved with markets understands that we are clearly at a transition in the Fed. That is a fact. What the new Fed will look like, and what it will mean to markets, is still unknown, with no market consensus in place either.
I am not too worried about the new Fed. Some are projecting that it will mean more volatility. Perhaps. Perhaps not. Nobody knows what they are going to *be* so it is silly to predict. We have to wait and see. So wait and see.
On that note, see you tomorrow.
-Mike
Visdom Market Commentary
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