S&P 500 Closes Down For The Week After Fed Statement and Ping Pong Between Growth/Value Relative Leadership

Key Takeaways

  • The S&P 500 closed at 4620.64 which is down from  4712 last Friday. The VIX settled at a pretty tame $21.57.
  • The Fed announced an accelerated tapering schedule this week and will now be done with asset purchases by mid-March, which brought up the expectations for the amount of rate hikes in 2022 to three.
  • The Omicron variant of COVID-19 appears to be highly virulent, but also less severe. 
  • We still see many indications that the “glass is half full” despite the myriad of risks developing for markets. Nonetheless, we still believe there is strength in the economy but the market appears to be moving in a more alpha-driven, as opposed to beta-driven, direction.

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“The enlightened ruler is heedful, and the good general full of caution.”- Sun Tzu

Well, the FOMC meeting occurred and we are still standing. Omicron is highly contagious and the outbreaks appear severe, but thankfully it appears not to be causing high levels of hospitalizations and serious outcomes. Our Head of Research, Tom Lee, will discuss the implications of the virus in detail below and what we think it means for the economy and the market. If you haven’t also please check out tactical guidance by our Head of Technical Strategy, Mar...

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