Weekly Market Commentary 05/19/2017

Despite the political turmoil in Washington over the past several months, the financial markets continued to give their best impression of Alfred E. Neuman, stubbornly adhering to a “what me worry?” attitude. That façade showed signs of cracking this week. On Wednesday, stock prices plunged, registering the largest percentage point change since last September 9, and the market’s fear gauge, the VIX volatility index, which had been dormant for months, shot up. Things settled down and the market recovered on Thursday and Friday, but the sleeping lion may have been awakened by the latest installment of the ongoing saga engulfing the Capitol.