Risk Happens Fast {Part II}

Fundamental variables drive longer term prices of equities around the world.  Beyond that, particularly in shorter time frames, stocks are priced by sentiment and money flows.  That is the "risk on/risk off" environment we've been in now for over a decade.    

Above are shown performance charts for all the major US averages and the London Financial Times Stock Index through yesterday.  Since markets are weak this morning, these performance numbers will look worse unless there's a rebound later today.   The FTSE or "Footsie" is comprised of the 100 companies listed on the London Stock Exchange with the highest market capitalization and is shown above 2nd from left in dark blue.  Markets began to get the jitters about a week ago when it began to look like Great Britain might actually vote to leave the European Union.  Investors have been caught offsides by this and there has been a massive global risk off movement over the past two weeks.

There is a higher probability of this uncertainty and volatility continuing till we know the results of the vote next week.

Back Monday.

*Long ETFs related to all of these indices in client accounts.  Long ETFs related to all of these indices with the exception of the Dow Jones Industrial Average in personal accounts.  Please note positions can change at anytime without notice.