What’s going on in the world…
Market opens higher on the back of a really solid earnings report from Bank of America. Earnings Season always starts with the Banks. The set-up was there for their stocks to go higher with less bad reports. In BofA’s case, it was pretty darn good, giving some confidence that things are in better shape than thought as we closed out last year. But there are plenty of issues still weighing heavily on investor sentiment and activity. The British Parliament rejected the Prime Minister’s Brexit plan, sending things back into turmoil with the clock ticking fast to the March 29 deadline. It is being called the largest defeat for Britain in 4 centuries. PM May faces another no confidence vote today. She’s expected to survive, yet again. Where this goes is anyone’s guess. The US government shutdown is approaching a month now, with no resolution in sight. It’s being reported that House Speaker Nancy Pelosi has requested President Trump to reschedule the State of the Union address until the shutdown is over. Self-inflected wounds can do serious damage for reasons not everyone comprehends. Stocks are having a good start to the day, with a great start to the year. What was an excruciating oversold situation in December is showing some signs of a nearterm overbought situation. Market volatility is going to stick around this year, that much we are certain.
Have a great morning,
Mike Frazier
