Commodity Volatility Drives a Downright Weird Day
Today's financial recap and tomorrow's financial outlook.
The falling yen pushed up the dollar as the Bank of Japan has endeavored to drive down its own currency to boost its economy.
However, it wasn't necessarily a "risk-off" day.
The Dow Jones Industrial Average (INDEXDJX:.DJI) was up only modestly, but the small-cap Russell 2000 (INDEXRUSSELL:RUT) saw a serious rally, and there were declines in so-called "safe" assets like US Treasuries and German bunds.
While there wasn't a great deal of commentary on monetary policy, Bernanke did note that the Fed is watching for signs of excessive risk-taking in the market, including "reaching for yield," which is an interesting statement considering the surges in junk bonds and dividend-paying stocks.
If you recall, in the past, the Fed historically focused on a dual mandate of price stability and maximum employment. This line of discussion represents an extension of the Fed's increasing emphasis on market activity.
Monday's Financial Outlook
With earnings season winding down, there are no major companies reporting on Monday.
Elsewhere, investors continue to debate whether we're headed straight for a pullback based on seemingly positive sentiment. However, the sheer quantity of market commentators specifically describing equity investors as complacent seems awfully high (see the Google News grab below), which is unusual for a market top, if that's what we're heading into.
Click to enlarge
But then again, there's this:
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