Weekly Wrap: The one-percent-a-day market

Weekly — January 11

The VNI advanced an arithmetical average of 1.1% on each day last week, outperforming the region and undermining our overly confident statement in last week’s strategy note that stock markets do not inexorably rise by 1% every day. On this run rate, the VNI would reach our full-year target of 1300 on Jan 22 (a possible but surprising outcome) and 16,856 by yearend. Satire aside, liquidity-driven bull markets can and do run far ahead of market fundamentalists’ expectations.