By Justin Turner CIM, DMS®, CFP®
In her debut as head of the Federal Reserve Janet Yellen
unnerved investors as she hinted at rising interest rates sooner than the
market had been expecting. Initially this sent markets into a tailspin
but stocks have since recovered and the S&P 500 appears poised to end the
week at yet another all-time high. The same cannot be said for gold which
has weakened substantially after the last few days, and may very well signal
the end of the rally that began just before Christmas. The Canadian
dollar has also fallen below 90 cents since the news, and could be headed for
more weakness in the near-term.
The stock market has proven to be resilient and has rallied
in the face of just about every piece of bad news that’s been thrown at
it. The S&P 500 may very well attempt to test the 2000 mark before
Summer hits, exactly three times the low it reached at the height of the
financial crisis.
