Good Day Insiders & soon-to-be Insiders,
The markets were pure red all day to begin Super Bowl weekend. It was said to be due to a strong jobs report showing wage growth finally starting to pick up. Basic economics dictates that surging job growth is healthy and positive for the economy, but apparently not when you have a Fed with more voltage for a printing press than the understanding of behavioural economics. The disconnect is that workers benefit, but investors are still concerned about inflation and the bond market.
The markets had their biggest down day of the year thus far, it was almost as bad as the Flash Crash in 2010, except that today there was no rebound. There was nowhere to hide: Gold, Bonds, Stocks, Oil, Bitcoin. In times of stress, asset classes are highly correlated, and unless you know how to trade volatility like Astute Strategist does, your diversified portfolio takes a coordinated hit.
This market seems to be getting more unstable as time goes on. January was a month for the ages, being up as high as +190 S&P points and closing up 140 points in the month. That’s almost unheard of.
With the amount of selling that took place in the second trading day in February, one can only assume that trees are being shaken and opportunity is ever present. A very warm greeting to some long-overdue volatility in this market! Join us to not only protect your capital, but grow it, in the face of an impending crisis. Others fear volatility, Astute Strategist embraces it.