Bracing for More Volatility Ahead

Commentary The market stage is set for what looks to be a very bumpy ride ahead, as a series of fluid situations are ramping toward inflection points that could bring about some abrupt fallout and ramifications regarding the U.S. economy, in the midst of a key presidential election year, plus new trends within our society. We’re only halfway through January, but there is already plenty to chew on for the year ahead. First, the widening out of the war in the Middle East has become more interesting after some 130 attacks on U.S. targets finally generated a response. Houthi attacks on shipping in the Red Sea risked reigniting global supply-chain disruptions, so the Biden administration finally responded against Houthi rebels in Yemen. One can surmise that the timing of the U.S. response at the beginning of an election year plays to the historical pattern that no U.S. incumbent president has ever lost an election during an overseas war....