Weekly Market Commentary 08/11/2017
President Trump’s bellicose comments regarding North Korea sent shivers through the financial markets this week, driving stock prices down and volatility up. The CBOE’s volatility index, aptly referred to as the “fear index” soared to the highest level in nearly ten months on Thursday following Trump’s statement that it would respond with “fire and fury” to North Korea provocations. The tremors barely receded on Friday, although stock prices did stage a modest rebound. With geopolitical tensions ramped up, another element of uncertainty overhangs the economic landscape. So far, households and businesses have taken the ever-evolving political chaos in stride. It remains to be seen if the existential threat posed by the prospect of nuclear warfare changes that dynamic.
- DATE: August 11, 2017
- TYPE: PDF
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