Friends
It is somewhat breathtaking to watch the volatility in stocks right now. Yesterday’s collapse saw some follow through by the bears this morning as the Dow was down more than 400 points several times during the trading session. But, in the end stocks as measured by the S&P 500 were only down by a fraction for the week, which is remarkable given the volatility that we saw.
By the close, the Dow Jones Industrial Average was down 98 points to finish the day at 32,899. The S&P 500 was down 23 points to close at 4,123. The Nasdaq Composite Index was down 173 points to close at 12,144. Gold was up $7 to trade at $1,883 per ounce, while oil was up $2.36 to trade at $110.62.
The narratives about the Fed meeting and the Fed Chair’s comments afterward are really amazing to hear. Almost hour by hour, usually dictated by what the markets are doing that particular hour, the narrative seems to shift. He shouldn’t have taken a 75 basis point hike off the table. He was too hawkish. He wasn’t hawkish enough. We have said over and over this year that the markets are going to need some time to sort all of this out and these day-to-day proclamations are not only silly, but they are dangerous for long-term investors. NO one knows how this process will play out, hence the volatility as markets hate unknowns, so please avoid those pundits who declare “this is the bottom” or “rates are going here”. The ride of choice to long-term financial success is the roller coaster. The roller coaster is going to get you there, but sometimes the ride can be a bit scary.
Have a great weekend everyone.
