Transcript:
Tom Vaughan:
Hello, everybody, welcome to Tuesday. The S&P 500 was down about .6%, today. I’ve been getting questions about what’s my opinion as to why it’s coming down. It’s been down six out of the last seven days. Yesterday, we had a nice up day. We’re hoping for an up day today, to kind of signal maybe reversal back to the uptrend, again. It doesn’t seem like that’s happening right now, and there’s lots of different reasons.
One of the things that happened this morning, it was up, on the inflation news for August. August was up .3%, on the inflation measure. The expectation was that .4%, so that’s a good thing; because inflation is one of the things the market has been concerned with. And then it came back down, really selling off after they started talking about raising corporate taxes from 21% to 26%. So, there’s just all these different things that are happening along those lines.
But here’s what I would look at, I think as the major catalyst here as a whole, is that the market is up a lot this year, and that there is maybe more negative things that the markets looking at than positive. We don’t have earnings coming out, we don’t have an infrastructure bill that’s been signed yet, and so there’s kind of this paucity of positive news, it’s causing a little bit of a vacuum. But even then, this is a fairly normal scenario where the market just continues to march up, and then in order to get to a new high, you have to kind of get these little pull backs, and you get this scenario where people come in and bargain shop and what have you, too.
I think that this is a necessary piece, I think it’s important: It’s part of a healthy market. The markets that concern me the most all the time, and the ones that just go straight up and go up very, very rapidly and very aggressively, because those usually snap back a lot harder, and then sometimes that snap back can turn into kind of panic selling. So when you’re just letting off little bits of pressure, over time, that’s the healthiest way to kind of grow market. And the 50 day moving average is up. The 200 day moving averages up: The price is above both of those. So, at the moment, this is a great market, it continues to be even with these little downturns that we’ve had. So, we’ll watch and see what happens. I do think tomorrow is gonna be interesting to see how this plays out, but look forward to seeing what’s going to go on tomorrow. Talk to you then. Thank you.