Cash flowed out of the muni sector at the same time issuance of new
bonds climbed to the highest level of the year.
Only a tenth of the S&P have reported their 3Q numbers so far, and a
higher-than-usual percentage of them are exceeding analyst estimates on
both revenue and profits.
The third quarter for equity markets was similar to the two quarters
that preceded it in 2016 – a long stretch of relative calm interrupted
by brief bouts of volatility.
There’s the tendency for forecasts to be overly optimistic when it comes
to market performance and that of the underlying economy.
We can expect markets to remain on edge as investors feverishly work to
decode every Fed utterance for clues on its intentions.