Market Notebook

U.S. Equities finished higher with massive volatility last week, while bonds ticked slightly lower.

Equities appeared to remain in consolidation even though the January 24th lows were temporarily breached. This is both good and bad news. The fact that equities quickly recovered from the lows is positive. The fact prices breached the lows is negative. The coming week should provide insight into whether the consolidation range is psychologically important for equity market participants.

Bonds remain in a downward trend; however, an area of possible consolidation is forming.

Russian military action in Ukraine dominated the headlines and market price action last week. The entire episode is a sad commentary on the state of affairs on our beautiful planet. The human race needs to improve how conflict is resolved and realize that life could be so much better if only the focus were on making life truly better instead of this continuous struggle for power and prestige. Regarding the global market impact, this event may cause major shifts in the global economic order. The clearest present economic risk is that dislocations cause additional inflationary pressure due to supply chain issues. As for the citizens of Ukraine, I can only wish that the conflict will be resolved with the least amount of damage, destruction, and loss of life possible.

Look for continued volatility in the week ahead.

All the best.