The Celeri Journal #84: Volatility Eases

Written by Michael

On May 29, 2020

Global Markets Recap

Stocks continue to rip higher as symbolic signs of optimism abound – at least on the sports field. Hockey is back or will be soon. They’re playing football & basketball in Florida, Texas & New Jersey; mostly everywhere. If wearing masks, washing hands & social distancing are the Holy Grail of getting the country back to semi-normalcy, I suspect most will be on-board.

Even Mitch McConnell is feeling generous these days, saying more fiscal spending appears likely. Wall Street analysts are predicting negative bond yields over the next 5 years, as low-or-no interest rates won’t go away soon. Cheap money & interminable stimulus checks are a formula equity shorts are beginning to now recognize is exceedingly tough to combat. Money is in the air, and mergers & acquisition deal makers should be extremely busy throughout the year. Capital markets are not only functioning again; in some cases, they are thriving.

The VIX – which measures stock market volatility – is below 30 after trading in the 80s during the height of the panic. If stocks keep catapulting higher, you can set your watch to the VIX falling back into the low teens- the same place it sat for a dozen years post Lehman on benevolent central banks from Tajikistan to Santiago, Tokyo to DC. You know what they say in San Salvador.

Limited preview. Subscribe below.

You May Also Like…

The Celeri Journal #110: The V-Shaped Recovery

The Celeri Journal #110: The V-Shaped Recovery

Global Markets Recap Proponents of the "V-Shaped" recovery (& equity bulls) are winning as some 5 million Americans went back to work - with new jobs - in June. The unemployment rate fell to a respectable - given where we were - 11%. Coronavirus is still here; but...

read more
6 Small Business Loan Types for Business Owners

6 Small Business Loan Types for Business Owners

As a small business owner, you may have a dream of your enterprise growing into a large corporation or a publicly listed company. However, expanding a company needs more capital to pay additional expenses such as new employees' salaries and other operating expenses....

read more

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *