Weekly Market Commentary 02/02/2018

All eyes were on Washington this week, where President Trump delivered his first State of the Union address and the Federal Reserve held its last policy-setting meeting presided over by Chair Janet Yellen. Neither event produced any surprises that would rattle the financial markets. Yet stock prices suffered a huge drop during the week and bond yields rose to levels not seen in nearly four-years. The heightened level of investor anxiety, which reached a feverish pitch with Friday’s rout in the stock market, is reminiscent of the days when “good news” was considered bad for stocks and bonds. It remains to be seen if volatility has returned to the markets with the vengeance seen this week.