Light Speed News …. Market Implications and Some Cool Complacency Stats … Summer Friday

Yesterday while on a business call in a Starbucks (still traveling.) I was once again reminded at how fast news travels.

Best to Families involved with the Air Crash

My best wishes go out to all of the families of the victims of this terrible tragedy. By no means do I wish to minimize their loss.  The following are simple observations, in my humble opinion worth noting.

Within seconds of overseas radio reports, my cell phone began vibrating like it was possessed. Over an hour before seeing the first pictures on major networks, they were already a part of the developing story … on my cell phone.

Light Speed News – Capital Market Implications

A few interesting capital market complacent stats:

• The S&P 500 Index Closed down over 1%
• Breaking a 62 day streak of no closing up or down movement greater than 1%
• Longest streak since 1955 (Wow!)

Are markets working ?

Capital Markets down on geopolitical concerns checklist:

• Check- Smaller More Risky Companies were down more
• Check- Gold, a fear asset, flies high
• Check- Bonds rally strong (investors flocked to US Treasury paper)
• Check- Junk Bonds, a long time watch of ours, see pressure

There may be a time, due to the afore-mentioned light speed that the checklist does not work. Along with obvious fright, opportunity would avail itself.  Maybe our “No Down” post on Wednesday set things into motion…even so it appears markets are working the way they should currently!

Today is a Friday and well …. You Know our saying … Don’t forget those in your life!!

Have a Great Day and a Super Weekend!

John A. Kvale CFA, CFP

PS With Monday as a travel day home, I will be in the saddle on Tuesday ready to go !

PSS Our checklist is super short term and normally not worthy of talk given our long term nature, but given complacency concerns, we like checking under the hood ….. Digital Diary too !