Apathy - The Reformed Broker
The markets drift steadily higher as the delta variant thing seems like it’s decelerating, things are quiet on the monetary policy front and Biden’s infrastructure bill advances from the Senate to the House. Earnings have been incredible across the board, and not just compared with the same quarter last year. On an absolute basis companies are reporting record high profits, cash balances, financial flexibility, consumer demand for their products and services, etc. Bank accounts are flush, brokerage accounts are spilling over with gains, 401(k) retirement plan assets are soaring and both consumers and businesses are making new investments for the future.
So, of course, we’re in an environment in which volatility has declined back to pre-pandemic levels and less attention is being paid to the stock market these days. Certainly nowhere near what we were experiencing a year ago. People I know in the financial media business are way down in traffic / eyeballs year over year. Shouldn’t they be? If the markets are calm, volatility is subdued and earnings season is going swimmingly, why would civilians pay any attention at all? People should be going about their lives in this interim period between the last shitstorm and the next one, whenever that should arise.
The S&P 500 has made almost 50 record closing highs this year. We’ve spent almost 100 days within five percent of all time highs with a persistent rotation beneath the surface of the indices driving virtually everything higher. Interest rates are at zero and central banks around the world are dampening volatility in the investment markets with their continued buying.
