S&P Finishes Slightly Down After Disappointing Jobs Report, But Finishes Week In The Green

Key Takeaways

- S&P 500 closed at 4,391.34 which was up from 4,357.04 last week.

- We understand there are a lot of headline risks, but we also see a pretty amazing setup for the market to climb a Wall Of Worry.

- The VIX has not gone into backwardation in recent volatility. We see this as demonstrating high-skew and see downside moves mitigated by the high level of protection that exists due to increasing bearishness.

- We expect a few negative earnings announcements focusing on margin compression, but it is unprecedented for expectations from early in the year to not be beaten.
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The extraordinary events of the period since COVID-19 led to changes we couldn’t have imagined only years ago. Market commentary is laden with pessimism. We don’t think this is a surprise or accidental. We have faced the highest mass casualty event in US History and a bungled response has left the public trust woefully lacking.

Domestic strife and the rise of demonization of those who don’t agree with you as a new media business model make the reasons for anxiety and apprehension about the future very real. There has been no time when exogenous events caused such a radical shift in daily life since the Second World War.

So, let’s look back at th...

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