While the volatility has been massive, it also presents opportunity. At a minimum we expect a healthy bounce. When stocks trading below their 50-day moving average fall below 15 percent, it has generally been a good opportunity for additional commitments. As of Friday February 28th, that reading was 3.1 percent. Moreover, Chairman Powell recently reiterated that the Fed will use tools aggressively if they are needed.
While volatility is likely to remain high, so are the opportunities. That said, financial markets rely on confidence, and when confidence erodes accidents can happen. For that reason, it is critical that all politicians work together to focus on a solution for all rather than score political points.