Mike’s Morning Brief: A fast-break rundown of what’s going on.
Market tries to bounce this morning after another beating yesterday, with losses erasing Monday’s gains. Europe is in the green after the EU President made an impassioned speech at his State of the Union last night. There’s tremendous uncertainty still since Brexit. The recent Market turmoil is centered around the fundamental health of the global economy and the role of central banks. Is all the growth real or artificial due to very aggressive monetary policy? Rising interest rates will certainly put a dent on growth, as the price of money becomes more expensive. That said, the Fed Funds rate is still near all-time highs, barely above zero. We will learn a lot next week at the Fed meeting. The bizarre events on the Presidential campaign trail isn’t helping either. It’s a tight race between Hillary and Trump. We all know one thing is true: the Market hates uncertainty. We are prepared for a tough few weeks ahead.
Have a great day,