August 8, 2011
Good morning. It is hard to even describe what happened in the market/world last week and the ramifications it may have on the economy and individual wealth going forward. The market had a horrible week, with the SPY down 7.2% to close at 120.08. The volatility index (VIX) closed up 27% on the week to close at 32, a level not seen since June 2010. Maybe even more amazing, since the focus of the week was the impending downgrade of the US credit rating, the 30-year bond was up over 3% on the week to close at almost 132, representing a 30-year yield of 3.8%.
July 18, 2011
Good morning. The market finished down last week despite a late short-covering rally on Friday afternoon. The SPY finished the week down 2.71 to finish at 131.69 (2%) after trading as low as 130.77 on Friday. The VIX soared 23% to close at 19.53 and the GLD (gold ETF) finished the week up 3.3% at 155.19. The market activity can be summarized as a series of fairly violent moves within the range of 130.50-135.50, with a lot of the significant trading taking place outside of normal market hours.