Folks don’t seem to know if they should buy or sell—or maybe we just have some folks that rode their 2024 capital gains into the new year so they could postpone some taxes for a year.
Equities started off strong and then around 11:20 a.m. (central) decided it was time to take the markets down–and a 1% drop occurred in a 20 minute time frame. I don’t see any news to have made this occur (but I never have the TV on during market hours–except for Fed day) so maybe I missed something.
Maybe the drop in equities was caused by the reversal of interest rates. The 10 year treasury was trading down at 4.52% when the market opened but has been pushed higher since that time up to 4.60%–now at 4.58%. I think there were thoughts that we had seen a short term peak and rates were heading lower–guess that isn’t the case today. I see we did have a 4, 8 and 17 week treasury auction occur –maybe the demand was ‘lite’.
Portfolios are showing gains mid day–although there has been a little giveback since the 1st hour or two of trading.
Currently I feel like I am well positioned so won’t buy or sell anything today. As always that could change by tomorrow.
I find it kind of humorous that people seem to be surprised the market is not going up constantly. Like standing there, with a stick, poking it and wondering what is going on. Do something. Go up. Poke. Poke.
New money coming in early in the year from retirement funds. If the market goes down the first week that portends a bad year more often than not.
Definitely trimming some of my high flying tech stocks today. Probably not alone.