August 16, 2021
Good morning,
“Welcome back!” – thank you, it was lovely and relaxing vacation. Special thanks go to Mr. Market however, who delivered a very quiet week in both amplitude and price action. Perhaps my dreaded market crash/vacation ratio will normalize going forward – time will tell.
The S&P 500 index (SPX) and it’s international cousin, the All Country World Index (ACWI) gained .71% and .66% respectively last week – just threading water at their all-time highs. This while the volatility index (VIX) closed at a new reaction low at 15.14. Based on the crowded roads encountered throughout the northeast yesterday it seems that many are either vacationing or getting their children ready for or back to school. We may have another quiet week this week as well.
Futures this morning are soft on more poor economic-data from China, the fall of Afghanistan and the spread of the delta variant. Perhaps that’s best sign of a vacationing market – a very muted reaction to some highly uncertain headlines (remember, the market typically abhors uncertainty).
See you Wednesday.
Be well,
Mike