September and the Deadzone
Welcome to the Oak Harvest Market Update and Recap for 9/7/2021!
U.S. equity futures are flat after the S&P 500 rose last week despite some disappointing jobs data. For the week, the S&P500 rose another 0.6% to stretch its year-to-date gain to 20.7%. 10-year yields up 4 bps to 1.36% which should favor small caps, cyclicals, and expanding breadth.
Most economies delivered underwhelming data for August, as supply chain stresses and the Delta variant weighed on activity. Hurricane Ida and her remnants tore through a wide range of U.S. cities and flared energy prices higher. The week began with the last U.S. troops leaving Kabul. 10-year Treasury yields moved higher, as they have done for 10 years when the Federal Reserve is dovish. Led by Japan last week, MSCI World Index marched to record highs and was up roughly 1% for the week.
The S&P 500 closed on 54 record highs year to date, the most ever through August, with 12 occurring in the last month alone, and reflecting the best month since April. The index realized new highs on 32% of trading days this year, the highest annual rate on record.
While we are now in the “deadzone” of the 3rd quarter, and therefore do believe that a few weeks of slightly higher trending volatility may be ahead with the potential for a minor pull-back into late September, we remain positive on the remainder of the year. If volatility presents any opportunities for our desired portfolio names, we will take advantage of them.
We continue to view the rest of 2021 as largely showing strength, with the first quarter of 2022 as the next most likely point at which the market may begin to be impacted by various factors.
Stock Talk Podcast (Weekly Market News and Opinion from Oak Harvest):
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The Investor Mindset Podcast (Introduction to Critical Concepts for Investors):
https://oakharvestfg.com/investor-mindset/
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Weekly market updates contain general information and express the views of Oak Harvest Investment Services. All data, articles, and information cited are believed to be reliable at the time of creation; however, Oak Harvest does not warrant any information contained herein to be correct, complete, accurate or timely.
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