We pivot again to inflation this week. The catalyst for taking pen to paper this time on the topic is the 6.2% year-on-year jump in the October Consumer Price Index...
“It takes two to make a thing go right, it takes two to make it outta sight.” Some of us will remember dancing to “It Takes Two,” the massive ‘80s hit by Rob Base and DJ EZ Rock.
Investors are rightly concerned about the recent level and persistency of inflation, which, depending on what metric one uses to measure it, is running at 4% to 5% year over year.
Unfortunately, September lived up to its reputation as a bumpy month for the market and then some, with the S&P 500 selling off approximately 4.7%.
Systemic was a word heard often on Wall Street last week as investors tried to divine the impact China’s Evergrande Group might have on the world economy.
We are about halfway through what has historically been the roughest month of the year for the stock market, and so far, September is living up to its reputation.
Despite the Delta variant of the coronavirus, supply chain bottlenecks, a spike in input prices, and a meaningful employer/employee mismatch, the US economy continues to power ahead.
There has been much written in the financial press the past few weeks about the just-passed 50th anniversary of President Richard Nixon taking the US off the gold standard.
With Friday the 13th just having come and gone, now seems an appropriate time to take stock of those issues that worry many investors.
A few questions have dominated our client conversations in 2021:
- Will inflation prove transitory or persistent?
- How might changes to the tax code impact the markets?
- When will the Fed taper and tighten?
- What investment style wins out this year: growth or value?
While we have known for some time that the US economy had well moved on from the pandemic-driven recession of early 2020, the National Bureau of Economic Research (the NBER, the official arbiter of our nation’s business cycle) made it official last week declaring the US economy exited recession in April 2020