{"id":57813,"date":"2021-09-25T00:34:48","date_gmt":"2021-09-25T07:34:48","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=57813"},"modified":"2021-09-26T11:51:54","modified_gmt":"2021-09-26T18:51:54","slug":"almost-like-nothing-happened-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/09\/25\/almost-like-nothing-happened-the-market-breadth\/","title":{"rendered":"Almost Like Nothing Happened – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

Last week opened with a gap down<\/a> amid hand-wringing about the potential for contagion from debt problems in China’s property market. However, the week ended like nothing happened. The major indices even managed marginal gains after the dust settled. As is so often the case, the Federal Reserve, under the comforting words of Jerome “J-Pow” Powell, paved the road for the buyers with reassuring resurfacing of the roads. From J-Pow in response to a question<\/a> about China’s property giant Evergrande (emphasis mine):<\/p>\n\n\n\n

“…the Evergrande situation seems very particular to China, which has, has very high debt for an emerging market economy, really the highest that any emerging market economy has had. And the government has been working to get that under control. This is part of that effort. The government put new strictures in place for highly leveraged companies. And Evergrande is dealing with those strictures, and it’s something [they’re] managing. In terms of the implications for us, there isn’t, there’s not a direct United States exposure<\/strong>. The big Chinese banks are not tremendously exposed. But, you know, you would worry that it would affect global financial conditions through confidence channels and that kind of thing. But I wouldn’t draw a parallel to the United States corporate sector.<\/strong>“<\/p><\/blockquote>\n\n\n\n

The day’s gap up held and buyers never looked back.<\/p>\n\n\n\n

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