market observations

While the global economy runs on QE-fumes suggesting growth, the economic engine seems to be, in reality, running on a couple cylinders in great need of an overhaul while central banks continue to pour fuel into the tank hoping for some continued measure of progress. Since 2016, major averages have corrected beyond a few percent just once. The fast bounce back to new highs suggests global QE will win the tug-o-war vs. higher rates in the U.S. 

market observations

Stocks caught a bid, with the S&P 500 extending its gain for the week to 1.8% so far.  Treasury yields ticked lower across the curve, and a stronger greenback pushed the Dollar Index back above 90 as today’s steel and aluminium tariff announcement featured exemptions for Canada and Mexico, as well as the possibility of other countries also getting a waiver. 

$change must begin with reprogramming of the mind$

The S&P 500 closed 6.66% away from the highs yesterday. After today is it 10.2% away and officially in a correction. February 2016 was last time it was in a correction. This is the first time in history the S&P 500 went from a new all-time high to 10% correction in 9 days or less.