Daily Market Commentary

January 9, 2019

St. Louis Federal Reserve President James Bullard said he believes that further interest rate hikes by the central bank could drag the U.S. into a recession, according to comments he made in an interview with The Wall Street Journal.

Markets may be too certain that the Federal Reserve's next move will be to ease monetary policy and cut interest rates in 2020. Economic stability later this year will lead to a repricing of monetary-policy expectations to a long pause or a single hike.

The Cboe Volatility Index, knows as the VIX, has fallen eight of the past 10 trading sessions, dropping to 20 on Wednesday versus 36 in mid-December. That's at odds with large realized swings in U.S. stocks -- a potentially unsustainable divergence.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy or sell.

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