Calm Before the Storm?...9/9/2016
The beginning of the year saw an incredible amount of volatility, but lately there has been almost no action in the market. In fact the other day, Charles Payne, Fox Finance Commentator, said that the market's haven't traded for this amount of time and in this tight of a range in over 100 years. To be fair, I didn't check his figures...but the point remains...this market has calmed considerably.
This kind of soothing market generally sets the stage for big moves one way or the other. With the low allocation to equities, it seems the market participants are expecting a pullback around election time. But I am wondering if the "bets" are already in for a pullback and the next big move just might be a surprise rally.
Time will tell.