What is “Baked Into” Current Market Prices?

We have an important calendar with employment and housing news. Some important market worries have been avoided, at least for a time. What is behind the rebound in stocks. Trying to explain the reasons for changed market perceptions is a wonderful topic for pundits! Anyone can play since no credentials or expertise are required. Everyone can have an opinion. There is no way to determine who is right. I expect many to be asking:

What assumptions are baked into current market prices?

Last Week Recap

In my last edition of WTWA (two weeks ago) I questioned whether those who had inferred economic disaster from December’s stock decline now had a different viewpoint. That was a good guess. The daily commentary, while still featuring recession stories, has taken note of the new market mood. On to the next worry!

The Story in One Chart

I always start my personal review of the week by looking at a great chart. This week I am featuring Jill Mislinski. She includes a lot of relevant information in a single picture – worth more than a thousand words. Read the full post for more great charts and background analysis.


There was a lot of news last week, but stocks gained only 0.4% and the trading range was only 1.4%. You can see volatility comparisons in our Quant Corner (below).


Generation Z is entering the workforce. Visual Capitalist has its customary comprehensive infographic, which you can only appreciate by seeing it in its entirety. Here is a very small part.