Markets stocks volatility

He’s No Janet Yellen, But For Now, ‘Straight-Up Bliss’

But, and there's always a "but"...

"Straight-up bliss". That's how Bloomberg describes the state of the US equity market which on Friday capped off another week of gains. It was the the 11th green week in 12. This is reminiscent of how 2019 began. Thanks to Jerome Powell's "I figured it out" moment on January 4 (the day he spoke at an event in Atlanta, flanked by Janet Yellen and Ben Bernanke just in case), the S&P began what may end up being the best year since 1997 rising in nine of 10 weeks. The Nasdaq, which crossed 9,000 on Thursday, slipped a bit on the final day of the week. Had it managed to close higher, it would have been the 12th consecutive day of gains for the tech gauge, which is up nearly 13% for the quarter. This is the best Q4 for the Nasdaq in 15 years, and it comes on the heels of one of the worst Q4s on record. It's hard to believe, but it was just 12 months ago when market participants were pondering a bear market in the FANG contingent, and celebrating Morgan Stanley's Mike Wilson as a regular Nostradamus. Fast forward 12 months and, well, let's just say things are going ok for the likes of Apple and Amazon again. In fact, Apple is up a silly 83% in 2019, and damn near 30% this qu
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3 comments on “He’s No Janet Yellen, But For Now, ‘Straight-Up Bliss’

  1. Are the Chinese playing with Trump? Let him see what happens when there’s some tariff relief and then pull the plug. Demand what they want, say in August or September, let the markets tank and watch him wiggle on the hook. Show him who really is the great deal maker.

  2. Anonymous says:

    Few are thinking about (aloud) what happens if the real economy does not respond to easier and easier monetary policy. Think Europe, think Japan for decades. What happens if the Fed keeps the party going and the attendees fall asleep or leave? Fiscal stimulus? Monetization? Return of inflation and/or stagflation?

    Not sure it is so easy with historically low unemployment, low rates, large deficits, aging population, constrained immigration, biz spending flattish (future productivity), less trade, and on and on.

    There is an old saying, if it seems too good it probably is.

    Time to step up the homework and factor in the risks few are willing to talk about but remain.

  3. Da Hammer says:

    Bernke put in motion a financial Doomsday machine…..just a mater of when it hits.

    VIX popped up Friday on a nothing day…….usually drops on Friday.

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