The Beginning? | August 18, 2017

The start of the week looked like a new beginning.  Geo-political tensions had calmed, equity markets surged in a big way, and the storm of the prior week looked like it had been averted. Then came Thursday…

Like a boat with no rudder in the storm, markets were batted around on Thursday. The move came as a result of several factors.  The dis-banding of President Trump’s economic council, risks that Gary Cohn would leave the administration, and falling energy prices weighing on energy stocks all took their toll on the US markets.

The week started with strong gains, but that seems like a distant memory at this point as the S&P 500 went on to lose all its gains from the week and end down 0.65%.

Is this the start of a correction? Great question!

Earnings were strong for the 2nd quarter.  As a result, valuations are not as overpriced as before. Volatility has ticked up closer to its long-term average, and the length of time since the last correction has done nothing but increase. September carries many roadblocks to market growth and this could be the lead into a rocky month.


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