Mike Zigmont, author of the Zigmont Report, is a partner at New York-based Harvest Volatility Management, a hedge fund with over $10B AUM, offering volatility management solutions to its investor base worldwide. Mike has been publishing his daily newsletter (Monday-Friday) privately for the firm’s investors and his personal contacts in the investment business since 2008, sending it daily shortly after the market close.
The opinions expressed below are my own
Wandering around. If the markets usually tell us things, today they weren’t speaking. It was quiet all day and the tape wandered around just a little bit. There was a small rally in the morning but this was in sympathy with European trading and those markets climbed almost 1 percent. Once Europe closed, our tape weakened to flat. A little later a Trump quote about how trade negotiations with China might fail sent stocks down small but the nervousness was short-lived. We stumbled around for the rest of the session and printed a boring close. Capital flow was once again very light (82%).
No news means no flow and (usually) no movement. That’s what happened today.
I wish I had some creative spin to share but today was a quiet summer Friday that just happened to show up in May.
I don’t mind quiet markets. I think we all should welcome them. Maybe I’m being paranoid but each day that quietly passes feeds my fears that we’re about to get hit with a doozy of a shock.
Markets were calm for so long that I think investors have slipped back into the expectation that calm & boring are the normal/usual state of things.
And who knows? Maybe it is now?
But I’ve got enough gray hairs to remember that volatility was part and parcel of capital markets.
See you tomorrow,