1) Volatility is HIGH The markets have started out the year on a distinctly volatile note, with the Dow surging several points one day and then dropping several hundred points next. So, what’s fueling the volatility here, and how long is it likely to continue? The biggest driver right now is falling oil prices, and while that is very good in some ways for consumers, it’s not so good for the energy sector and the US oil boom that’s been driving the economy for much of the past several years. So, how did stocks finish up the first full week of the year? What about bonds, the US dollar and precious metals? Find out in today’s leadoff segment. 2) Misconceptions on Interest Rates The dominant theory on Wall Street is that 2015 will be the year the Fed begins raising interest rates. Yet the Fed can only raise the fed funds rate, which is the short-term interest rate that it controls. Longer-term bonds, however, are being fueled by supply and demand, and it is the demand for US Treasury bonds
