(As of 7:15 am PST)
It’s another quiet day for markets today. A lack of economic data has investors
reconsidering these market tops. Other
signs of complacency are showing up in the options markets and on the
volatility index. Investors seem
hard-pressed to find value as stocks are trading near all-time highs and also with
valuations exceeding their normal historic range. Also adding to the cautious sentiment is the
return of the ‘taper talk.’ Dallas Fed
President, Richard Fisher, reminded investors in an interview with CNBC this
morning that a stimulus reduction is a strong likelihood. He remarked that the Federal Reserve cannot
sustain buying bonds at this pace and that at some point the stimulus must slow. With a steadily improving economy and new Fed
Chair Janet Yellen taking the helm at the beginning of the year, a taper may
come sooner than expected. Gold is flat
today and oil is lower. Interest rates
are slightly lower today after soaring since Friday. After etching its 36th record high of the year yesterday, it appears the Dow and other indexes are taking a breather today.
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