Thursday, October 13, 2016

Chart Talk {10.13.16}

This chart is from  Annotations to it are mine.  You can double-click on it to make it larger for better viewing.  We've been talking for some time that we expected to see volatility pick up this fall.  Well it's here, sort of.  Stocks have declined about 3% since around Labor Day.  However, that decline has been orderly and probably to the average investor hardly noticeable.  Most of the decline has been sector or individual stock specific.  Probability suggests this phase of volatility could continue until the election has passed.  Right now the Presidential election looks set with Mrs. Clinton opening up a sizable lead over Mr. Trump so investor concerns will likely shift to the Senate and House races. Interest rate concerns and worries about economic growth also aren't helping much right now for investor psychology.

*Long ETFs related to the S&P 500 in client and personal accounts.  Please note that positions can change at any time without notice on this blog or in printed or in electronic media.