Posted by:
Comments:
Post Date:
- Stocks were up across the board last week. We saw global markets (represented by the MSCI All Country World Index) up 2.1% and domestic stocks (represented by the S&P 500 Index) up 1.5%. U.S. small companies (represented by the Russell 2000 Index) led the way up 5.1%.
- With the month of August coming to an end this week, we can expect the August jobs report on Friday. Even though the unemployment rate has dropped to 5.4%, concerns still surround the spread of the delta variant and all eyes will be on the impact on the labor market.
- Despite their rhetoric that inflation is transitory, the Fed’s preferred inflation gauge continues to show sizable growth. The personal consumption expenditure price index was up 4.2% on a 12-month basis, which is the highest in three decades. The Fed has been steadfast in their belief that much of the inflation increase is transitory and due to supply chain issues.
- The S&P 500, which is a good measure for U.S. large cap stocks, closed above 4,500 points for the first time on Friday.
- Early in the week, the FDA gave full approval of the Pfizer-BioNTech Covid-19 vaccine. In response, energy stocks and oil prices rose through the week.
- I thought the below chart from BNY Mellon was an interesting one. We all talk about the increase in consumer spending versus pre-Covid levels and it’s a good exercise to see where exactly that spending has taken place. Both the home furnishing and building materials industries have recovered fully, while travel, leisure, and dining out are still in their recovery phase. Each line below represents an industry compared to the starting place of Jan/Feb 2020.
- I’d like to leave you with the final line we’ve used since we started these commentaries back at the very height of market volatility in March 2020. Always remember that we create financial/investment plans not for the easy times, but to prepare for the tough ones.
Financial planning and Investment advisory services offered through Diversified, LLC. Diversified is a registered investment adviser, and the registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. A copy of Diversified’s current written disclosure brochure which discusses, among other things, the firm’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov. Diversified, LLC does not provide tax advice and should not be relied upon for purposes of filing taxes, estimating tax liabilities or avoiding any tax or penalty imposed by law. The information provided by Diversified, LLC should not be a substitute for consulting a qualified tax advisor, accountant, or other professional concerning the application of tax law or an individual tax situation. Nothing provided on this site constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This site is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.