Bulls Prevail! | September 15, 2017

Volatility fell last week as an appetite for risk returned to the markets.

Some of the things that brought risk appetites back were a lack of activity on North Korea’s founding day, Job openings, CPI data, and Consumer sentiment.

North Korea

On Friday the 8th, there was much expectation that the following day North Korea would take some provocative action. As Monday came, appetites were ready to buy on the fact that North Korea remained quiet.

Jobs

Job openings expanded greater than expected to 6.17M according to JOLT’s. That’s right, 6.17M, job openings are near all-time highs.

CPI

Consumer Prices (CPI) improved this last month to 1.7%, moving ever closer to the Federal Reserve Board’s (FRB) 2% inflation target. In addition, wage growth in the US has moved out of the 2% range, reaching 3.2%. With wage growth, comes the potential for GDP and inflation growth.

 

North Korea… Again

Investor appetites were not stamped out when North Korea finally made a show of force on Thursday night. After firing a missile that landed to the east of Japan, markets in Asia pulled back 0.5% but quickly rebounded. US markets the next day closed at all-time highs. The S&P 500 closed at 2500 points for the first time.

Conclusion

These animal appetites have either become complacent to North Korean activity, or the risk of North Korean action has begun to be priced into current market valuations. Either way, the Bulls were not deterred!

 

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Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long term holding strategy is the best strategy in any market environment.

Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.

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