Yesterday was the epitome of the “Dog days of Summer.” Markets were eerily quiet, matching the 28 consecutive days of lack of volatility, defined as a move less than 1% in either direction, the longest period in over 2 years according to Bloomberg.
Is this suggesting that the markets are incredibly efficient or does it suggest all complacent about tomorrow’s future?
The release of the Minutes of the July FOMC meeting was largely a nonevent and offered little clarity. The Committee was split last month on whether the job market would continue to strengthen as saw little risk of a marked pickup in inflation. The FOMC would wait for more data before a rate move.
I would like to digress for a moment and reflect upon all what is good in society in an era where all appear to be eviscerating one other with impugning vitriol.
Two nights ago in a women’s preliminary 5,000 meter race, two runners fell; USA’s Abbey D Agonstino and New Zealand’s Nikki Hamblin. Both helped each other up from their fall and supported each other to the finish with D Agonstino suffering a season ending injury. They finished last by a gargantuan amount.
There was no vitriol, accusations or victimizing comments but only two athletes who have spent their entire lives training for The Event that 99.999999999% of society only dream about helping and supporting each other to finish even as their lifelong dream was shattered in an instant.
One famous historian once commented “Few will remember what happened here.” In my view this selfishness act will be remembered as one of the greatest sporting events in history. It epitomizes all what is good about sports and human nature and reinforces my optimistic attitude that there is indeed hope for tomorrow.
What will happen today?
Last night the foreign markets were up. London was up 0.06%, Paris up 0.18%, and Frankfurt up 0.48%. China was down 0.17%, Japan down 1.55% and Hang Sang up 0.98%.
The Dow should open flat as the Dog Days of Summer are continuing. Oil is higher as the dollar is weakening, the result of the Fed Minutes which are now being interpreted that a hike may not be likely this year until there is a consensus outlook for growth, hiring and inflation. The 10-year is unchanged at 1.55%.
