BlackRock/iShares - Weekly Investment Commentary: As Markets Swing, Momentum Can Be Deceiving

Weekly commentary overview
- Stocks experienced several violent reversals last week before finishing strong. Stocks continue to find support in an old friend: central bank accommodation, most recently from the Bank of Japan.

- Despite this most recent spike to the proverbial central bank “punch bowl,” we are likely to see continued abrupt swings in financial markets.

- This is particularly true in those areas that seem crowded, i.e., are particularly expensive.

- Thus, in the prevailing environment of heightened volatility, momentum remains an unpredictable theme.