Risky assets leap into new year

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Back from the festive season break, traders pushed stock market indices to new highs for the rally, logging a full house of five up-days for the S&P 500 Index and pushing the CBOE Volatility (VIX) Index down to levels last seen pre-Lehman in 2008.

Pundits shrugged off Friday’s unexpected decline in non-farm payrolls, as well as mixed economic data earlier in the week, focusing instead on the Federal Open Market Committee’s (FOMC) communiqué for its December 15–16 meeting which maintained its “extended period” stance for easy monetary policy, i.e. more “juice” for risky assets.

Read all about this, together with some thought-provoking news items and quotes from market commentators during the past week, in the weekly “Words from the Wise” review.

Tickers: GOLD

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