Last week, the retail sales number was excellent, first-time unemployment claims hit pandemic lows, and Oil has retreated from $85 to $76/barrel. The market however wants more information.
2022 predictions are starting to be released, with one well-known firm suggesting that the S&P 500 will finish 2022 at 4044, and another well-known firm suggesting 5100. With the S&P 500 currently sitting at 4698, both firms are suggesting a market that will not move in a straight line either way!
For the week, the markets were mixed with the S&P 500 rising .36% and the Nasdaq Composite up 1.27%. On the downside, the Dow retreated (1.29%) and Small Caps (2.83%).
Foreign stocks lost (.78%) and Emerging Market stocks down (1.25%).
Bond yields are still fighting the inflation scare with the 10-Year staying resilient, finishing last week with a yield of 1.54%… pretty much where it was September 30, 2021. Interesting!!!
Thanksgiving
Yes, Thanksgiving is a wonderful time to be with family and friends. Being with those closest to your heart is certainly special, especially after what all of us have endured.
For me, Thanksgiving penetrates much deeper. It’s a time of reflection as I honestly look back, personally and professionally. This helps me plan and think through what I want to accomplish next year.
Professionally, I’m so darn thankful. I have wonderful clients who have helped me build a thriving financial planning practice. I am so grateful to you, my clients. I get up each and every day knowing I’m honored to serve as your advisor.
I would also like to take this opportunity to thank my assistant, Ellen. I could not continue to pursue my goals without someone as talented and dedicated. And talk about pleasant………………Wow!!
New Sheriff?
This week, President Biden is expected to nominate the Federal Reserve Chairperson. Does President Biden desire to have Chairman Powell continue for another term, or will he appoint current Federal Reserve Board Governor, Lael Brainard? Or perhaps, someone else?
Powell (age 68), is a Republican who was appointed to the Federal Reserve Board by President Obama in 2012, and then the Federal Reserve Chairperson by President Trump in 2018. Brainard has been a Federal Reserve Board Member since 2014 and was the former Under Secretary of the Treasury for International Affairs during the Obama Administration.
Does it matter? I believe the answer is yes, however not suggesting I prefer one over the other. Either will be faced with the same current inflation, interest rates, and employment challenges.
What is very important is how the Fed Chair conveys its intentions to the market. Powell has had 2 “slip-ups.” In the 4th Quarter of 2018, he said we needed to continue to raise rates indefinitely, which caused a 15% + stock market correction. Ever since March 31st of this year, Powell has strongly suggested inflation will be transitory. He may prove to be correct about inflation, however not in his time-frame. We’ll see on this one. So, words definitely matter!!!
