Get updates on recent capital market data and trends, including possible expectations for future outcomes.
Major averages have now gained for three-straight weeks despite persistent challenges to supply chains and the labor market. A wave of technology earnings this week could shift the leadership balance that has seen value outperform growth in recent months.
Market analysts like to describe how investors scale the “wall of worry” in reaction to bad news. But by focusing on specific events, they often overlook the fact that investors are always on the wall of worry.
Investors in traditional 60/40 portfolio models have come to expect double-digit returns in recent years. Now with high valuations and macro-economic challenges, they may want to consider different strategies to help avoid lower future returns.
Supply chain issues, signs of a shift in Fed policy, and credit rates at multi-month highs have combined to create skepticism amongst investors. The gap between job openings and a lack of workers could limit the recovery into 2022 despite strong demand from consumers.
The S&P 500 delivered its best week in nearly three months on encouraging earnings data and despite continued pressure on a number of fronts, including supply chain, inflation and commodity pressures. Technical indicators are improving, with the S&P 500 back above the 50-day moving average and sentiment and breadth indicators improving.
Inflation worries continue as supply chain disruptions and labor shortages persist and commodity prices rise on soaring energy demand. Worries over stagflation grow as investors wonder when inflation will ease.
