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Market Watch Weekly | January 29, 2021 | GameStop-Ed?

Erik Dekker - Jan 29, 2021
North American indices closed out the last week of January on a volatile note as heightened speculative trading by retail investors unnerved the broader market. We been advising our readers for weeks to expect some form of market consolidation...

North American indices closed out the last week of January on a volatile note as heightened speculative trading by retail investors unnerved the broader market. We been advising our readers for weeks to expect some form of market consolidation as extreme levels of optimism have led to an overbought condition. That said, the extraordinary liquidity from corporate bond and equity new issuance, an ultra-friendly Fed, and further fiscal stimulus suggests any weakness – even if sharp – should prove temporary and be used as opportunity to ramp market exposure. As always, corrections only feel healthy at times when things still feel good. When the correction comes, not so much.

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