Low Volume Volatility
Volatility returned this week, as the market fell 0.83% for the final full week of the 2021 Financial Year. In a reversal of last week’s market moves, the US and European bourses all look likely to post gains. In fact, last week’s 3.5% drop on the Dow was its worst week since last October.
In more positive news, US real GDP is almost back to pre-COVID levels and is expected to breach the pre-COVID trend early next year. The calls to taper the bond buying program will no doubt be louder if the trend continues, but it is a fine balancing act between cutting the cord too early and risking higher unemployment.
We’ll likely see more movement in our market as the Bulls and Bears jostle on lighter volume with school holidays here and summer holidays in the Northern Hemisphere.