Key Takeaways

- S&P 500 closed just below an ATH at 4,535.43 despite a significant miss on payroll data. The VIX stayed tame around the 16 handle

- The Fed tapering schedule was likely held back by the significant miss on August payrolls this morning. However, we show why there was actually a bullish subtext in this miss

- Friday saw some weakness in the Epicenter/Re-opening names compared to earlier in the week

- Technology has been showing relative strength. Nasdaq closed at ATH
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Markets have always had a recurring element of mystery to them. For example, this morning, we had what seemed like a pretty wide miss on payroll data, but the market still finished slightly up. If you expected a large sell-off due to the miss, you would have been sorely disappointed, particularly if you tried to time such an outcome. So, in the height of such an unstable time with such a myriad of risks and challenges on the horizon, why do markets continue to go up?

Hyman Minsky was an economist who developed a theory called the Financial Instability Hypothesis. His intellectual contributions were largely overlooked, many of his books fell out of print, and then the Great Financial Crisis happened. His description of how an endogenous financial cri...

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