While not a huge fan of digging deep in the weeds … aka focusing on the short term … to ignore market structure, the speed at which items adjust and the current temperament would not be good progression…. especially with the drastic technology improvements that are occurring, and most certainly filtering into the Capital Markets …. Not to worry, we will not stay here long!
Lets take a look at several interesting asset classes/indexes!
Front/Next Month Crude
While in a semi public location, a friend looked over my shoulder post market close on Wednesday March 5th… while looking at the price of Crude Below — “Not much worry here so far!” … our collective statements –
That changed of course, a few days later… somewhat surprisingly, almost a full round trip – Hopefully not a Jinx here!
If you are on the road outside of a major city, take note of the number of large trucks moving items- the above chart is very important with this regard …. among many other items.
VIX – Volatility Index AKA Fear Gauge
During the lockdown the Fear Gauge aka VIX went to 80 + and stayed for a day or so ! Can remember very clearly….
General Parameters:
Normal – VIX <= 20
Nervous – VIX 20-30
Really worried – VIX 30-50
Freaking Out VIX 50+ – Very limited time here, thankfully – again hoping no Jinx…
While still elevated, much closer to normal and not near the “Freaking Out” levels!
10 Year Treasury – Proxy for many other Bonds
“Back in the Good Ole days” … a conflict would attract a flight out of Equity/Stock investments into Bonds – pushing yields down, then after some time elapsed, Bonds would start pricing in the Inflation effects of the prior Oil Chart – Today (remember the speed thing in the opener) investors/computers move money so fast, they bypass the safety and go to the next step of Higher Inflationary affects!
This feeds into the all important 30 Year Mortgage!
Capital Markets – Large Small International
Here is the interesting part – the magnitude adjustments of the other Assets above was much greater than these assets (No wishful Jinxing) not sure if this continues, but blindfolded would not have guessed this more calm movement!
Have a Great “5 Day Asset Class Review” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
