Markets Down After Fed Minutes, Rotation From Growth to Value and Reflationary Winners Marks Week’s Action
Jan 7, 2022
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Key Takeaways
The S&P 500 closed at 4677.03 which is down from 4,778.74 it closed at on 12/30. The VIX settled at $18.76 and didn’t get far above $20 despite Fed woes.The Fed released FOMC minutes from the last meeting that seemed to indicate a more hawkish posture and aggressive timetable for lift-off, as well as the prospect for shrinking the balance sheet.The US 10YR rose significantly to 1.764%. There was a rotation from high-PE Technology into Value sectors like Financials and Energy.We see many risks that could derail equities and cause elevated volatility in the first ha...