Friday, December 18, 2015

Economic Journal - Friday, 12/18/2015

(As of 7:15 am PST)

Downside pressure continued into Friday’s session for US equities as tumbling oil prices weighed on energy stocks. Crude settled below $35 per barrel Thursday, trading near the lowest level in nearly seven years, while sending investors scurrying away from a short-lived Fed-led rally Wednesday. There’s not much relief in sight, for today at least, with no economic data to report and volatility already heightened due to different types of options contracts expiring simultaneously. Overseas is not much better. The Japanese central bank surprised markets overnight after announcing unexpected stimulus measures that left investors scratching their heads. The negative sentiment spilled into other Asian markets and European stocks as well. Gold is acting as somewhat of a safe haven today with the precious metal up over 1% while interest rates fell slightly. With only eight trading sessions left in 2015, the bulls and bears look locked in a battle that could go either direction at this point. In the long-run however, there’s a lot to be optimistic about, and it’s our view that regardless of how 2015 closes out, 2016 could be a good year for the stock market.

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