The View from 5th Avenue

The View from 5th Avenue – 13 October 2022

Today seemed to defy gravity and logic. One example -– The SOXL. which was down -15.4% on the lows then procured a +20% intra-day rally to end the day +9%. But that wasn’t the only wild swing --- the S&P swung over 5%, Bitcoin swung over 6% and JNK (HY Bond ETF) almost 2%. Not to mention, the Yen tested its former 1998 high at 147.66…and the 30yr fixed mortgage rate bumped up against 7%--- nothing like the 80’s of course, but still 20y highs. That said, looks can be deceiving and some of the moves didn’t paint as clear a picture of a shift out of bonds and into equities as one might have expected.

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