the uncertainty of suspension bridges

Uncertainty is the name of the game

Market Ethos.
17 October 2022

Last Wednesday, if you somehow had a premonition that the Consumer Price Index (CPI) was NOT going to show signs of cooling but instead surprise to the upside to bring core CPI to its highest annual pace in four decades, you would have expected markets to tumble on Thursday.

And you would have been right until about 11 a.m., when markets didn’t just get back to breakeven, but went on to post strong gains. The S&P 500 intraday range from the lows in the morning to the highs at the close was about 5%. The biggest angst for the markets this year has surely been the path and stickiness of inflation, so it befuddles the mind to make sense of Thursday’s market reaction, even with Friday giving back some of the gains.

Related articles

Insights

Looking for yield in all the right places

February 26, 2024. Market Ethos. Which is best: cash, GICs or bonds? Higher yields, from cash, to GICs, to bonds, even to dividend-paying equities has…

2 minute read

Insights

The market’s not broken … just riskier

The shift from active management to passive has been applying steady selling pressure. This, combined with the U.S. equity market outperformance has distorted global #equitymarkets.…

2 minute read

Market Ethos

Too much of a good thing?

February 12, 2024. Market Ethos. Where is this recession that has been the talk of the town for the past year or even longer? It…

2 minute read