New Week, New Records


Don’t fight the Fed. The value of those words was proven again as Fed complacency, indicated by the statement they released on Wednesday, removed any obstacle to higher equity prices. Once it became clear that the Fed would not be aggressive in hiking interest rates, the markets resumed their inexorable march higher. Market participants felt comfortable with what were perceived to be ‘dovish’ comments from the Federal Reserve. Additionally, instability across the globe was good for any dollar-based assets as investors abroad looked to the U.S. for safety.

Industrial production last month was slightly worse than expected, but it did little to dampen the mood. The August consumer price index came in lighter than expected, supporting the Fed’s case that they have room to maneuver. The September Philadelphia Fed Survey dipped, but still was strong. No data from this week counters the idea that the economy is slowly strengthening.

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