There really isn’t much to say about this week, is there? The markets ended Friday’s session higher across the board, breaking a 2-week losing streak. Seems benign from the outside but it makes you wonder; did anything really happen? As we all know, there was plenty of action to take in and talk about. After moving into correction territory midweek, money moved in from the sidelines to stop the proverbial bleeding. The whipsaw action we saw on Thursday alone was better than any rollercoaster ride. My biggest takeaway is that even in the face of the ongoing geopolitical challenges the world is facing, the U.S. markets, at least from a technical perspective, reached a deeply “oversold” level. The buying momentum which started on Thursday picked up steam and had the Dow Jones Industrial Average close on Friday with its single best day since late 2020. This is a welcome sign and speaks volumes given the current landscape.
Another interesting question we are now asking is, “What does the Federal Reserve do now that things have intensified abroad?” With a broader conflict unfolding, commodities, especially oil prices, will have much more upside risk in the near-term. This will certainly lead to additional global inflationary concerns, not just here in the U.S. Unlike the tone of last week where, discussions of a 1/2-point increase were gaining momentum, it seems like it’s back to square one with a 1/4-point increase now more likely to keep some of this recent round of volatility in check. As we have seen over the last few months, until we open the front door and look for ourselves, we simply won’t know who or what will be knocking.
The CDC announced on Friday more relaxed COVID guidelines as it pertains to indoor mask wearing. “With widespread population immunity, the overall risk of severe disease is now generally lower,” said Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention. These are welcome comments from the CDC and yet another sign that the pandemic may now be in the rearview mirror. By now, our fatigue “cup” is more than full and the cravings to live life as normal are in high demand.
We have spoken to many of our clients over the last week catching up and reviewing where things stand. We always welcome and encourage these conversations. It is important to feel confident that your personal and financial well being is being considered and planned for. Please don’t hesitate to reach out and check-in!
It’s been a long week and honestly, I’m a little tired. Aren’t we all ready for the weekend? Enjoy.