Monday, September 12, 2016

Interest Rates Fuel Volatility

Last Friday I posted that rough tides might be ahead. I didn't realize how many people followed me and decided to hit the sell button based on that article! All kidding aside the S&P 500's 2.45% drop was the largest since Brexit. Also the VIX shot up to 20%. Things have calmed down a bit today as the market advances over 1%.

Visit to see more great charts.

One noteworthy item is without anyone really noticing Financial stocks(XLF) have started to outperform their rate sensitive cousin Utilities(XLU). It shows the market has slowly been factoring in a rate hike since August.  Lately the rhetoric from the Fed is only fueling the fire.

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