Markets have thrown a curve ball, as not only have they recovered from the Brexit losses, but the S&P 500 is on the cusp of a new all-time high. It makes world markets very complex. Who is really driving the bus? The SPX could be at all-time highs but the SSE remains 42% off its 2015 high and only 13% off its January low. The DAX remains light years from the 2015 top while the FTSE has been able to make it to the drop zone from last August where all the trouble really started.
Two gigantic weeks are coming up. Up to bat first is Washington and Fed Chair Janet Yellen. The Fed knows it’s an absolute absurdity to raise rates in an economy that just created 38,000 jobs. But do you want to tell me they have their collective heads in the sand about an economy barely staying above water at 0.8% GDP?
Markets were already in trouble before Friday and the bombings in Paris certainly shouldn’t help. In early Sunday evening trade, Australia was down over 1% while tech and Europe nearly 1% but all were paring losses. It could’ve been a lot worse.