January Market Wrap: Volatile Month, Forecasts Similar For Remainder Of 2021

At the same time, even if stocks began 2021 richly priced, one does not sense a lot of fear among really big money that valuations are too crazy.

It is not clear how or if the pullback in the last week applied to participants in the battle between the short sellers of GameStop, AMC, Bed Bath & Beyond (NASDAQ:) and others vs. small investors.

That's because the Federal Reserve is not going to boost interest rates this year and probably not in 2022 either, as the central bank continues working to get the US economy moving once the COVID-19 virus is brought under control.

, the benchmark U.S. oil, surged above $50 as Saudi Arabia, Russia and other allies of the Organization Petroleum Exporting Countries agreed to production cuts to end a ruinous price war.

Chairman Jerome Powell was clear in a last week that getting the economy moving is his and the Central Bank's top priority.

As the Fed chief noted during the previous week's press conference, “I would say that financial stability vulnerabilities overall are moderate.”

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