Volatility was extremely high
I got a phone call last week from a client that I have been working with. I have done my best to help educate them on what is happening in the entire financial market. As we were talking, he continued to ask me what I thought the market was going to do, in regards to rates.......Isn't that a loaded question!!!
Volatility was extremely high last week, not just in the financial markets, but also in the economic reports and economic outlook. As I blogged last Wednesday, Friday was going to be key. That of course was the official Jobs Report, which came in well below expectations. Huge market mover.
Listening to the economic forecasters prior to the report, had made major downward revisions after the the ADP report on Wednesday. In fact, in the private sector alone, the report indicated that only 83,000 jobs were created in May - and that number was almost 100,000 less than expected!
So, Volatility was extremly high after that. Like there needed to be another catalyst to perpetuate the fear at future volatility
Although the Hourly Earnings came in a little better than expected, the core of the report was just plain bad. Even for a market, that after all of the unexpected disappointments, was hungry for good news, there was no way to spin this report in positive light.
This added to more pressure to our economic situation, and making sure that Volatility was extremly high in everything. Now the markets will have to wait and see if this was an anomaly and just one-off bad report and just a bump in the road to our country's recovery... or if things have indeed slowed down once again. The things that I keep seeing is that we are on a slow recovery, but weeks like the last one we just had leaves certain uncertainty.
Volatility was extremly high, but as a professional, this is where the more that I am up to date and educated for my clients, the more I can prove that I am the professional that they NEED.
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