Friends
Stocks drifted lower for the 3rd trading session in a row. Again, at this point the pullback is nothing unusual or dramatic, but it is notable in that it’s been a while since we’ve seen anything but higher stock prices. Stretched valuations have entered the narrative this week, something we have pointed out for some time now. Remember, valuation is a measure but not a timing mechanism. If we were to continue this selloff into quarter end, then the valuation narrative will likely become more prominent.
As for today, by the close the Dow Jones Industrial Average was down 173 points to finish the day at 45,947. The S&P 500 was down 33 points to close at 6,604. The Nasdaq was down 113 points to close at 22,384. Gold was up $14 to trade at $3,782 per ounce, while oil was up $.23 to trade at $65.22 per barrel WTI.
Sentiment is a very important market indicator. Have investors become too complacent with regards to markets making new all-time highs throughout the summer? On the other hand, a case could be made that there has continuously been a healthy amount of skepticism with regards to stocks since Covid and trillions of dollars parked in money market accounts seem to verify that narrative. For now, let’s see how the week finishes out tomorrow.
Have a nice evening everyone.
