With the last trading month of the year underway, investors may want to fast forward into 2016. The first week of December hasn’t exactly been the start of the Santa Claus rally that everyone had hoped for—once again, the culprit was the Federal Reserve.
All eyes are on the Fed and its historic decision to raise rates later this month. While much of the data is pointing to that eventual rise, some metrics haven’t been that rosy. There is still a chance that the Fed won’t raise rates this year, which has investors on edge—and with investors on edge we get a hefty dose of volatility.
Not helping is the lack of earnings and guidance from stocks. The so-called earnings season is basically over and the number of firms reporting is almost zero. The ones that are, and they are mostly consumer stocks, have an amplified effect on the markets.
All in all, the Fed – and the clear lack of earnings and data direction – is throwing investors for a loop.
