
It traded on both sides of Friday’s range, and now is below Friday’s low.”īURNS MCKINNEY, PORTFOLIO MANAGER, NFJ INVESTMENT GROUP, DALLAS

Oil is having what they call an outside down day. “Gold has rallied but it’s coming off its highs after peaking last Thursday. But it doesn’t mean when the first shots are fired, there won’t be a dramatic market reaction. “I’m skeptical that all of this is Russia driven.

“Given people have lost money, whether it's in crypto or the stock market, people want to find a culprit and I think that people are torn between two possible candidates: the Federal Reserve and Russia. MARC CHANDLER, CHIEF MARKET STRATEGIST, BANNOCKBURN GLOBAL FOREX So I think a large portion of this pullback is due to people taking profits, people having concern that the Fed may go too far and perhaps derail this economic recovery." That hawkish pivot kind of met the excessive stock market valuations that we saw due in large part to that record three-year run of the S&P 500, which was the best three-year run for that stock index since 1999. “Today’s slide is part of the continuation of the market reacting to the more hawkish pivot that the Fed took at the end of 2021. Technology, which saw valuations reach dotcom like levels, is down 14% from its high with more than 70% of the stocks in the NASDAQ Index 20% or more below their 52-week high. What we have seen is these are the areas of the market getting hampered the most in the recent volatility. Tech taking the brunt of weakness: Excess liquidity and ultra easy monetary policy have fueled speculation, euphoria and excessive pricing in some investments.
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This week the Federal Reserve meets and while we expect no changes at this meeting, the market is pricing in a full quarter point increase in March. Investors are accepting the harsh reality that the end of the ultra easy monetary policy is upon us. MEGAN HORNEMAN, DIRECTOR OF PORTFOLIO STRATEGY, VERDENCE CAPITAL ADVISORS, HUNT VALLEY, MD * VIX: The VIX (.VIX) was up 16% and touched its highest level since Oct 2020

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