Inflation soaring to the highest level since 1982 did not scare investors away from equities as markets closed the week higher. Consumer inflation climbed in November to almost a four-decade high. Technology shares led the rally as financials and utilities lagged for the week. Concerns over the potential impact of the Omicron variant of COVID-19 on the economic recovery eased, which helped equities higher.
Investors Unfazed by INFLATION Read More »
Omicron, the newest COVID variant, caused a selloff in the equity markets last week as investors weighed the possibility of new lockdown measures. More cases of the new variant were discovered in the United States, which helped trigger angst in the markets. Investors were also reacting to Fed Chair Jerome Powell, who mentioned that rates could rise sooner than previously thought.
Market Reacts to Omicron Read More »
The coronavirus reminded us again that the pandemic is far from over. Last Monday, Austrian residents started their day in lockdown. Later in the week, the new Covid-19 variant from South Africa set off alarm bells worldwide. Europe first, and then the U.S. announced travel bans on South Africa and surrounding countries. This setback in the fight against the virus caused investors to sell equities globally and buy the safety of Treasuries.
South African Variant Sell-Off Read More »
With Washington’s political attention over President Biden’s recent economic and social stimulus bills and the global debate over greenhouse gases, beneath the surface could electric vehicles be laying the groundswell for another industrial revolution? Tesla’s market-cap now at $1.1 trillion exceeds Toyota, Volkswagen, Daimler, GM, and Ford’s combined. New EV entrants Rivian, recent IPO ($100 bn) and Lucid Motors ($90 bn) combined market-cap already exceed Ford and GM.
The Next Industrial Revolution? Read More »
October experienced a spectacular rebound from the September Effect drawdown, with the S&P 500 gaining 7.0% along with long-dated Treasuries returning 1.8%. This momentum was aided by President Biden’s massive stimulus expected from the Infrastructure Bill, above consensus corporate earnings, and the market’s expectation of a softer landing in rate tightening. Equity market gains were concentrated on growth and momentum factors not commonly dominant during extended secular economic recoveries.
Monthly Performance October 2021 Read More »
Stocks finished the week lower as worries over rising prices and deteriorating consumer confidence pulled equities lower. Consumer sentiment measured by the University of Michigan Consumer Sentiment index fell to a multiyear low, indicating that consumers are worried about rising prices. Inflation continues to be an issue, with both the producer and consumer prices increasing more than expected.
Economic data came in a generally strong showing that the economy has gained strength as the delta variant has waned. Factory orders increased more than expected, and October’s unemployment report also topped estimates. The pickup in hiring was widespread across many industries, including the leisure and hospitality group.
Factory Orders Exceed Expectations Read More »
Strong quarterly earnings reports lifted the equities market to new highs last week. Earnings, in general, have surprised to the upside except for a few notable names such as Apple and Amazon that disappointed, blaming supply chain bottlenecks. For the week, consumer discretionary companies performed well, helped by Tesla, saying that rental company Hertz agreed to buy 100,000 of its electric vehicles.
Q3 Reports Boost Market Read More »
To the casual eye equity markets led by the S&P 500 index-free climbs past another record gain of 2.38% in July was anything but routine. With close scrutiny as the undertow from the economic skepticism from the delta variant and emerging markets uncertainty with China’s sudden stock market crackdown temporarily splintered the global recovery. What should have been a choreographed global economic recovery instead behaved like an economic slowdown from the composition of the equity and bond markets.
Monthly Performance Report September 2021 Read More »
Limited space is available. Tee time is Friday, April 22 at 2 pm. Remember to book your hotel and air travel accordingly. Sowell will cover the cost to rent resort clubs, if needed.
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