Lunacy Continues

Monday, stocks closed little changed in Asia, gained slightly in Europe, and fell slightly in the U.S. on low volume. Tuesday, stocks gained 0.9% in Asia, closed unchanged in Europe, and rose 0.4% in the U.S. on low volume. The Dow Jones Industrial Average again closed at a record high.

Wednesday, stocks gained 0.5% in Asia, closed nearly unchanged again in Europe, and changed little in the U.S. on very low volume. The change in the U.S. was positive though which pushed the Dow to another record closing high along with the S&P 500 and NASDAQ for good measure. The big news of the day was the release of the FOMC minutes from their meeting three weeks earlier.

Thursday, stocks gained 0.4% in Asia, closed nearly unchanged in Europe, and fell slightly in the U.S. on low volume. The VXO rose 7% to close at 8.03. Friday, stocks rose slightly in Asia and Europe but closed nearly unchanged in the U.S. on low volume. The VXO fell 6% to close at 7.57. The 10-Year U.S. Treasury Bond yield fell 2%, to close at 2.28. And finally, if you want to understand what it is that drives the true value (not market price) of a stock, here’s a link to a comprehensive article.

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