Volatility has been the name of the game for the S&P 500 (SPY) the last few weeks as investor optimism over the summer has turned into pessimism recently. Investors have been ruminating on a variety of issues, the main concern being higher prices. Recent CPI and employment figures were disappointing, but they aren’t quite as dire as it seems. Equity prices should continue to rise because the economy continues to grow and is stable. I’ll discuss this and more below….Enjoy this version of my Weekly Commentary, published on October 14, 2021 by the POWR Value newsletter.
As investors keep an eye on any possible stoppage to the bullish market, the markets have been very volatile in the past few weeks. The recent developments include price hikes. High supply and demand chain hurdles drive up the prices of commodities, notably oil and. This has led to recent pessimism.
These worries are temporary for the economy’s strong fundamentals, which should drive markets into the future. The Conference Board U.S. The Leading Economic Index is used to gauge future growth. Its current level is 13.7% annualized six-month growth. This is historically high and indicates that the economy is strong with plenty more growth ahead.
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