February 2017 Commentary

Having a background in the music business, I have a keen ability to keep track of “records”. However, during the month of February, my mind was blown away by the number of records being achieved on Bay and Wall Streets. Up until and including Feb 28th we had 50 straight trading days where the S&P 500 had not moved 1% or more, up or down; and then indices broke out on March 1st (after Donald Trump’s speech). If one looks back historically to when we have had long streaks (50 days +) of subdued returns (< 1%) with an upside breakout as we experienced on March 1st, it gets pretty interesting. In other words, if history is a guide, markets may experience a high degree of volatility in the near future.

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