Today we are seeing volatility return to the market. As I write, the S&P 500 and Dow are down 2.08% and 2.39% respectively. Over the past week the VIX has risen over 40%, coming off of a period of historically low closes. While today is exciting, the real story will be told when the markets re-open on Monday. The setup today feels like a familiar story in this historic bull-run. An unforeseen political action, in this case the release of the GOP Surveillance memo, followed by a subsequent decline in the markets. Historically, shares have shown to be resilient; recovery from the surprise Brexit vote took less than 2 weeks for the S&P 500. The term ‘buy the dip’ has come to characterize our current market. Moving towards the close today and during the open on Monday we will see if the sentiment for buying these pullbacks has shifted. Over the past week I have read second hand reports of brokers having difficulty selling volume in the market. In other wo...
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