Better-than-expected employment data provided fuel for the dollar’s rally as investors anticipated the Fed may have leeway to further tighten policy.
Stock prices, as usual, shrugged off any concerns over tightening and moved higher. The near total lack of concern in those markets is noteworthy. The VIX, an index which provides some indication of fear levels, has never before been this low for this long. Investors have never shown less concern about a correction.
Practically everyone is positioned for prices to move higher even as stock valuations keep running further ahead of actual profitability.
If markets were genuine and not so heavily managed, this lack of concern would be a major red flag for a possible top. Under the current circumstances, however, stocks could very well continue higher.
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