Hope all is well. All three major U.S. stock indexes rallied on Friday, but for the week markets took a step back, posting weekly declines. Fear over the surge in COVID-19 infections continues to weigh on the market. I have broken down this week’s news using Jeopardy style answers as the game show’s botched succession of Alex Trebek continued to make headlines this week.
This term is used to describe the process of gradually stopping asset purchases when there is no predefined end date or amount.
What is Tapering? The Fed will begin buying less assets before the end of the year according to minutes of the U.S. Federal Reserve meeting released this week. Fed officials made it clear that a tapering isn’t a precursor to an imminent rate hike. Economic growth is on pace for the best year in over forty years, so the Fed tapering is justifiable and unlikely to cause any type of prolonged correction.
From 1996 to 2001, this group held power over roughly three-quarters of Afghanistan, and enforced a strict interpretation of Sharia, or Islamic law.
Who is the Taliban? The United States exited Afghanistan and the Taliban quickly seized control of the country. The images on Monday were disturbing but the impact on the market was minimal. This morning, President Biden activated the Civil Reserve Air Fleet, requesting U.S. commercial airlines assist in the airlift of U.S. citizens and Afghans. Rising geopolitical risks in the region could be a future source of volatility and bears watching.
In a recent speech, Gary Gensler, the head of the SEC, denounced the lack of clear regulations, and promised to take action to protect investors from this investment.
What is cryptocurrency? Bitcoin’s back. It continued to extend its gains from the previous week, rising to $48,713. Even with the continued rise since hitting a low on July 21, it remains far below the $63,000 record level that it hit in April.
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