Untying the Knot
There are more questions than answers right now, as the financial markets try to secure footing. Yesterday, the Dow fell -2,014 points, easily its largest single day point loss in history. The previous mark of -1,191 was set less than two weeks ago on Feb. 27. Just two business days later on March 2, the Dow climbed +1,293 points, establishing a new high for single day point gain. The next day, the Dow shed -970 points, before gaining back +1,173 points a day later, the second biggest single day advance in history. This wild stock market volatility is evidence of an untethered market. It isn’t clear where the economy goes from here, and it’s even less clear how the Fed will react.