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“I never had the fear of getting beat, which is how most people lose.” ~ Dan Gable, wrestler and Olympic gold medalist (1972) 

Good evening,

It was a tumultuous week. We saw strong gains during and immediately after a meeting of the Federal Open Markets Committee, to be followed with a sharp Friday sell-off that Fundstrat Head of Research Tom Lee unequivocally described as “ugly.” In addition to sharp declines in equities (all three major indices), we saw the VIX surge to nearly 29 before retreating to end the week around 23 – still highly elevated.

This seems to have been driven in large part by labor-market numbers that some interpreted as foreshadowing a broader economic downturn. For some months now, stock investors have been in a “bad news is good news” regime, but that does not appear to have been the case this week.