It was assumed that the GDP data that came out Friday would be the biggest news of the day. The market reacted positively to those numbers and held strong until around 1pm when the news came out about the FBI Clinton email investigation. At that point the elections spooked the market and immediately fell off.
All eyes in our country right now are on the presidential debate. We believe that there are so many other things we should be debating in this country. These other topics tie to the investor and the American voter who have retirement accounts and investment portfolios.
The markets can be viewed as a football field. You may have your portfolio or team on the field. The Fed is the referee and the Fed can pull out the flag and call a penalty. We are seeing a lot of market volatility because the Fed has been making a lot of penalty calls recently, especially on this past Friday.
The S&P 500 has currently gone 40 sessions without as much as a 1% move up or down. There is no crisis to fix and this is creating bored and dangerous investors. There is a difference between a bored and a shrewd investor.
Investors are frustrated over the market uncertainty that is being created by the Fed. The Fed seems to be playing a word game which is hurting the markets and creating market volatility. More in the video.
We are always looking for what will be the next catalyst that will take the markets and your portfolio up. The next market catalyst could come if earnings catch up to price and make the market less expensive. The big negative risk will be if price drops to where earnings are. However, technology could be the market catalyst we are looking for.