Does a lack of volatility mean complacency?
US household net worth grew to a record $92.8 trillion in the last quarter of 2016, due in large part to gains in the stock market, according to the Federal Reserve’s quarterly financial accounts report.
Producer price inflation slowed in February, but the trend pointed to a steady building up of inflation pressures. The producer price index climbed 0.3% last month. In the last 12 months, the PPI is up 2.2%. (Labor Department)
The spread between high-yield corporate bonds, also known as junk bonds, and U.S. Treasury yields widened from 3.40% to 3.80% this week. Much of this move can be attributed to increased supply as junk bond issuers try to get ahead of the Fed rate hike. (LPL Research)
Does a lack of volatility mean complacency? The S&P 500 traded in a range of only 0.25% on Monday, the smallest range this year and one of the tightest ranges ever going back 50 years. Small ranges are nothing new, as the S&P 500 hasn’t traded in a daily range of more than one-percent for 60 consecutive days, an all-time record. Additionally, the S&P 500 hasn’t closed down by 1% or more for 105 consecutive trading days, tying the longest streak since late 1995. (LPL Research)
The S&P 500 is up 7 and the NASDAQ is up 11. The MSCI international index is up.
Oil is up $1 at $48.75 a barrel.
Gold is down $2 at $1201 a Troy ounce.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.