In recent weeks, bullish sentiment has drifted lower like sediment settling after a storm. 

Every month, Bank of America (BofA) surveys global asset managers. The most recent survey, which was conducted in early September, showed that fewer managers remain optimistic about prospects for global economic growth (13 percent) or corporate profitability (12 percent). That’s half the number in the previous survey and the lowest percent since April 2020, reported Katie Martin of Financial Times.

When optimism declines, managers typically retreat to safer harbors and portfolio exposure to stock declines. That hasn’t happened this time. About one-half of the global asset managers surveyed in early September by BofA were overweight stock. Cash allocations were rising slowly and there appeared to be little appetite for government bonds, according to Financial Times.

The BofA survey also reported on the concerns of global asset managers. “Inflation is the biggest tail risk for markets, followed by taper tantrum, and COVID-19 Delta variant,” reported Bloomberg. Tail risk is the chance that a loss will result from an unusual event.

Rapidly changing conditions in China also may be a concern for investors. The Chinese government’s recent regulatory enforcement actions during 2021 have negatively affected market values of companies in education, technology, entertainment and home building sectors.

Last week, a number of financial bloggers and commentators were arrested in China, and many financial websites and blogs were scrubbed from China’s social media platforms. The change could help reduce fraud with the unwelcome side effect of eliminating non-government viewpoints, reported Financial Times.

 “The uncertainty hovering over China now includes threats of tougher regulation, higher tax rates, greater charitable giving and government influencing business decisions,” reported Financial Times. A China expert cited by the newspaper commented, “‘All of that just leads to the fundamental question of what happens to that excess return that you used to be able to get as an investor in China, and how much is that disappearing or eroding in this new environment…’”

Uncertainty also is an issue in the United States where another debt-ceiling crisis appears to be looming. Jack Hough of Barron’s explained:

“As rising partisan rancor has turned everyday legislating into a death struggle, politicians have grown more willing to use the debt ceiling as leverage. A standoff in 2011 resulted in a credit downgrade to the U.S. government, a brief but angry slide in stocks, and a temporary move higher for bond yields, which accountants later said cost the U.S. government billions of dollars in added interest. The outcome was a shaky compromise, which fell apart in 2013, but Congress hadn’t yet regained its appetite for another round of fiscal chicken, so it suspended the ceiling. There have since been many extensions, the last of which expired at the end of July. The Treasury is now reaching under its couch cushions for funds. Without action from Congress, America will default by mid-October.”

Last week, major U.S. stock indices finished lower, reported Ben Levisohn of Barron’s. The yield on 10-year U.S. Treasuries moved higher.

Where are you? If you were virtually dropped into another country, do you think you would recognize where you were? 

In 2013, Swedish information technology consultant Anton Wallén created a game around an internet company’s street-view maps. Players are dropped into a street view within a country and must identify the location. The person who guesses correctly the most times, scores the most points and wins.⁸

The game also provides data about which parts of the world are most easily recognized. The Economist used information from the online geography quiz to build a ‘recognizability index.’ The index evaluates which places are most recognizable and who recognizes them most easily. The newspaper balanced correct guesses against incorrect guesses and determined:

·         The most readily identifiable countries are Japan (64 percent correct guesses, 9 percent wrong guesses) and the United States (79 percent correct guesses, 40 percent wrong guesses), followed by Russia, Italy, Brazil and Britain.

·         The most misidentified country was the United States. “…18% of players who reckoned they had been dropped in America were actually in Australia. Spain and Mexico were also frequently mixed up. Not all of the guesses made sense: at least one person mistook Luxembourg for Mongolia.”

·         The people who are best at identifying geographic locations live in Germany, Switzerland and France.

·         The people who are worst at identifying geographic locations live in Turkey, Russia and America.

There is an important caveat that accompanies these findings. Not every country or street in the world is included the street-view maps used in the game. For example, coverage of Germany is limited because of privacy concerns and significant parts of China are missing.

 Weekly Focus – Think About It
“What an amateur is, is a lover of a subject. I’m a lover of facts. The fact is the savior, as long as you don’t jam it into some preconceived pattern. The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.”
—Daniel J. Boorstin, Historian and 12th Librarian of the U.S. Congress   

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.ft.com/content/03285246-065e-4cbc-b2b2-eedb3d06ccb1 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_Financial%20Times_Investors%20Rein%20In%20Risk_1.pdf)
https://www.bloomberg.com/news/articles/2021-09-14/bofa-survey-shows-rare-disconnect-between-stocks-and-economy (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_Bloomberg_Fund%20Managers%20Sour%20on%20Stocks_2.pdf)
https://www.investopedia.com/terms/t/tailrisk.asp
https://www.ft.com/content/d5725cb3-169c-442f-953e-077bb926f4c0 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_Financial%20Times_Financial%20Blogger%20Crackdown%20Leaves%20China%20Investors%20Scrabbling%20for%20Data_4.pdf)
https://www.barrons.com/articles/debt-ceiling-2021-reconciliation-vote-politics-51631916808 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_Barrons_Fiscal%20Chicken%20Anyone_5.pdf)
https://www.barrons.com/articles/stock-market-falls-because-theres-something-scarier-than-taxes-tapers-and-contagion-51631925838?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_Barrons_The%20Stock%20Market%20Dropped%20Because%20Theres%20Something%20Scarier%20Than%20Taxes_6.pdf)​
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
https://www.geoguessr.com
https://www.economist.com/graphic-detail/2021/09/17/which-is-the-most-recognisable-country (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_The%20Economist_Which%20Is%20the%20Most%20Recognizable%20Country_9.pdf)
https://www.washingtonpost.com/archive/lifestyle/1984/01/29/the-6-oclock-scholar/eed58de4-2dcb-47d2-8947-b0817a18d8fe/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-20-21_Washington%20Post_The%206%20o%20Clock%20Scholar_10.pdf

The Delta variant could take a toll on economic growth.

There was some good news last week. The 7-day moving average of COVID-19 cases in the United States declined. The bad news was that the rate of infection remained about 99 percent higher than it was one year ago.

As Delta variant infections surged across the United States, expectations for economic growth dropped more sharply than anticipated. Lisa Beilfuss of Barron’s reported on changes to third-quarter forecasts for U.S. gross domestic product (GDP) growth.

“Goldman Sachs cut its forecast to 3.5% from 5.25%, Oxford Economics revised its call to 2.7% from 6.5%, and Morgan Stanley lowered its estimate to 2.9% from 6.5%. That’s as the Atlanta Fed’s GDPNow model predicts 3.7% for the quarter, down from 5.3% at the start of the month,” Beilfuss wrote in Barron’s.

Economists aren’t the only ones revising expectations. Some companies have cautioned that their revenue and earnings expectations were too high. Several airlines reported that cancellations have increased and ticket purchases have declined, which will impact the companies’ financial performance. In addition, some manufacturers indicated that unresolved supply chain issues and the high cost of raw materials will affect their performance for the quarter, reported Yacob Reyes and Sam Ro of Axios.

A chief investment officer cited by Axios said it’s unlikely that many more companies will cut their revenue or earnings forecasts; however, “…he does expect fewer companies to announce better-than-expected earnings when they announce Q3 results.” During the second quarter of 2021, 87 percent of companies in the Standard & Poor’s 500 Index reported better-than-expected earnings.

Last week, major U.S. stock indices trended lower, reported Al Root of Barron’s. The yield on 10-year Treasuries also finished the week higher.

 Upside-down rhinoceri and other improbable stuff. It’s September and paper airplanes were flying across screens at the 31^st First Annual Ig^® Nobel Prize virtual ceremony.

The Ig Nobels recognize the unusual and celebrate the imaginative to rouse interest in science, medicine and technology. Every year, 10 prizes are awarded for research that makes people laugh and also makes them think. Commemorative awards are given to the winners by actual Nobel laureates. This year’s outstanding research included:

Biology prize: Susanne Schötz, Robert Eklund and Joost van de Weijer received an Ig Nobel for their work in cat acoustics. The introduction to “A Comparative Acoustic Analysis of Purring in Four Cats” explains, “The domestic cat is one of the most popular pet animals in the world, and virtually everyone is familiar with its trademark ‘purring’ sound. Contrary to what might be believed, it is not known exactly how purring is produced, and there is a surprising lack of studies of purring, even descriptive.” The scientists have also studied cat chirping, chattering, trilling, tweedling, murmuring, meowing, moaning, squeaking, hissing, yowling, howling and growling.

 Ecology prize: Did you know the United Kingdom spends almost 70 million euros each year cleaning chewing gum residue from pavement? In addition to providing that bit of trivia, Ig Nobel winners Leila Satari, Alba Guillén, Àngela Vidal-Verdú and Manuel Porcar offered insight to “…the microbial content of [improperly discarded] chewing gums sampled in different locations worldwide as well as the distribution of bacteria depending on the depth (surface, intermediate and bottom layers of the residue).” The findings may have implications relevant to forensics, contagious disease and cleaning up chewing gum.

Chemistry prize: “Proof of Concept Study: Testing Human Volatile Organic Compounds as Tools for Age Classification of Films,” which has 10 contributing authors, examined a new method for rating movies: Measuring the emissions of humans watching the movies. “Humans emit numerous volatile organic compounds through breath and skin. The nature and rate of these emissions are affected by various factors including emotional state. Previous measurements of [these emissions] in a cinema have shown that certain chemicals are reproducibly emitted by audiences reacting to events in a particular film.”

Transportation prize: Have you ever wondered whether hanging a rhinoceros upside down would affect its health, a team from Cornell University has the answer. These researchers suspended a dozen tranquilized rhinos upside-down for 10 minutes to simulate a common form of transfer used by wildlife conservationists in Africa. The finding, published in the Journal of Wildlife Diseases, was that it may be safer to transport a rhino upside down rather than on its side.

Prizes also were awarded in the fields of entomology, physics, kinetics, medicine, economics and peace.

Weekly Focus – Think About It
“The most exciting phrase to hear in science, the one that heralds the most discoveries, is not ‘Eureka!’ but ‘That’s funny…’”
—Isaac Asimov, Biochemistry professor and author

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.cdc.gov/coronavirus/2019-ncov/covid-data/covidview/index.html (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-13-21_Washington%20Post_Denmark%20lifts%20all%20coronavirus%20restrictions_1.pdf)
https://www.barrons.com/articles/heres-an-inconvenient-truth-the-growth-slowdown-goes-beyond-the-delta-variant-51631307629?mod=hp_columnists
https://www.axios.com/airlines-covid-ticket-sales-projections-43bac1f0-3bfa-43b0-b06f-01aeb2afecf1.html (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-13-21_Barrons_Heres%20an%20Inconvenient%20Truth_3.pdf)
https://www.axios.com/ppg-industries-supply-chain-earnings-disruption-7263631e-1a34-4745-8fe5-0538fcc1b771.html
https://www.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_091021.pdf
https://www.barrons.com/articles/stock-market-selloffs-need-a-trigger-heres-what-could-cause-the-next-one-51631322248?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09_13_21_Barrons_A%20Stock%20Market%20Selloff%20Needs%20a%20Trigger_6.pdf)
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
https://www.improbable.com/2021-ceremony/ig-nobel-prizes/
https://www.diva-portal.org/smash/get/diva2:539090/FULLTEXT01.pdf
https://www.improbable.com
https://www.nature.com/articles/s41598-020-73913-4
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0203044
https://bioone.org/journals/journal-of-wildlife-diseases/volume-57/issue-2/2019-08-202/THE-PULMONARY-AND-METABOLIC-EFFECTS-OF-SUSPENSION-BY-THE-FEET/10.7589/2019-08-202.short
https://www.brainyquote.com/quotes/isaac_asimov_109758​

Stagflation isn’t trending, but it was mentioned in quite a few headlines last week.

Stagflation is a portmanteau of ‘stagnation’ and ‘inflation.’ It occurs when a country experiences slow economic growth along with high inflation and high unemployment. In the United States:

·         Economic growth was strong during the second quarter; 6.5 percent year-over-year, according to the Bureau of Economic Analysis. However, some forecasts for third quarter’s         economic growth have been revised downward. Economists at one large investment bank lowered their estimate from 9 percent to 5.5 percent, reported Lindsay Dunsmuir of Reuters.

·         Inflation is the rise in prices over time. The Federal Reserve prefers to measure the rise by looking at median Personal Consumption Expenditures (PCE) inflation. Median PCE was up   0.29 percent from June to July 2021, and up 2.2 percent over the past 12 months. The Federal Reserve’s target for inflation is 2 percent.

 ·         Employment showed a solid increase in August, although the gains were less robust than many expected. Unemployment ticked lower (5.2 percent), the labor force participation rate   remained unchanged (61.7 percent), and average hourly earnings ticked higher ($30.73).

The culprit behind slowing growth, rising prices and recent unemployment levels is COVID-19. The spread of the Delta variant created a new wave of parts and labor shortages. Demand for goods is rising as many people appear to be less concerned about the virus. Shortages of goods coupled with high demand for those goods have pushed prices higher.

The Economist reported that the Delta variant, “…looks like a stagflationary force that is sapping growth less dramatically [than the original COVID-19 strain] but firing up inflation. Delta is weighing on consumer spending in the rich world but not causing a collapse. In countries with lots of vaccines, cases are no longer doing as much to stop consumers from moving around.”

Last week, the Dow Jones Industrial Average finished lower, while the Standard & Poor’s 500 Index and the Nasdaq Composite moved higher. The yield on 10-year Treasuries ticked higher during the week.

 What does wave power look like? If your neighbor mentioned wind energy, you might picture a towering turbine planted in a field or rising offshore. If a friend talked about a solar farm they saw while on vacation in Colorado, you might picture acres of solar panels angled to catch the sun’s rays. Waterpower often brings hydroelectric dams to mind.

What do you picture when asked about wave power?

Almost three-fourths of the Earth is covered by water. Tides surge and retreat. Wind blows waves across the tops of oceans and lakes. Freshwater and marine life drift on currents.

Water generates a lot of kinetic energy. “When it comes to renewable energy, waves have other resources beat in two respects. First, unlike solar, waves offer a consistent energy source regardless of time of day. Second, waves provide much greater energy density than wind due to water’s heavier mass,” reported Mary Beth Gallagher in MIT News.

Despite its potential, wave energy lags far behind in the race to develop renewable energy sources.¹¹ While diverse methods for capturing wave energy have been developed, none have become widely used. As a result, when wave power is mentioned, nothing in particular may come to mind.

That may change soon. This month, “…researchers will float a yellow platform out into the waters of the Pacific Ocean, north of the Hawai’ian isle of O’ahu. It’s not just there to roll upon the waves…if all goes well, it’ll turn those very waves into electricity…Wave energy could, for instance, charge up the buoys that landmark the sea. It could power the desalination plants that make seawater drinkable, potentially providing life-sustaining hydration to places like islands that need it most. It could help make aquaculture more sustainable. And it could power electric vehicles at sea,” reported Rahul Rao of Popular Science.

Will a yellow and black cylinder bobbing in the ocean become the symbol for wave energy? Only time will tell.

Weekly Focus – Think About It

“My grandparents lived with us. And I remember watching ‘Doctor Who’ with my granddad on his new telly. These were the days before remote controls but my granddad, being quite a resourceful sort of chap, had fashioned his own remote control – which was a length of bamboo pole with a bit of cork that he’d glued on the end.”
—Bill Bailey, comedian

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.investopedia.com/terms/s/stagflation.asp
https://www.bea.gov/news/2021/gross-domestic-product-second-quarter-2021-advance-estimate-and-annual-update
https://www.reuters.com/world/us/goldman-sachs-economists-cut-q3-growth-forecast-us-2021-08-19/
https://www.clevelandfed.org/our-research/indicators-and-data/median-pce-inflation.aspx
https://www.bls.gov/news.release/empsit.nr0.htm
https://www.economist.com/leaders/how-the-pandemic-became-stagflationary/21804167 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-07-21_Economist_How%20the%20Pandemic%20Became%20Stagflagnant_6.pdf)
https://www.barrons.com/articles/wall-street-stock-market-fall-forecast-51630709312?refsec=the-trader
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2021 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/09-07-21_Barrons_Nothing%20Can%20Take%20the%20Stock%20Market_7.pdf)
https://www.usbr.gov/mp/arwec/water-facts-ww-water-sup.html
https://news.mit.edu/2019/race-develop-renewable-energy-technologies-1218
https://www.popsci.com/environment/wave-power-searay/
https://www.brainyquote.com/quotes/bill_bailey_1064281

Markets were shaken last week by a potent cocktail of central bank tapering and economic growth concerns mixed with coronavirus and a splash of the new Chinese privacy law.

On Wednesday, the minutes of the United States Federal Reserve’s Open Market Committee Meeting were released. They confirmed the Fed could begin tapering – buying fewer Treasury and U.S. government agency bonds – sooner rather than later, reported Jack Denton and Jacob Sonenshine of Barron’s. While that wasn’t new information, investors startled like cats surprised by cucumbers, triggering a broad sell-off.

In the United States, economic data was mixed. The U.S. Census reported that retail sales declined in July, suggesting weakening consumer demand. Normally, that’s not great news because consumer demand drives U.S. economic growth. However, with inflation at the highest level in more than a decade, lower demand could help relieve upward price pressure.

Lower consumer demand was accompanied by improving supply. Lisa Beilfuss of Barron’s reported, “…business inventories rose in June at the fastest clip since October as wholesalers and manufacturers posted solid increases and retailers saw inventories rise for the first time in three months. From a year earlier, inventories across American businesses rose 6.6%, compared with a 4.6% pace a month earlier.”

Of course, we could see supply bottlenecks again if a COVID-19 surge results in new lockdowns and continued worker shortages.

Finally, on Friday, Chinese stocks dropped sharply after Beijing announced that a new strict data-privacy law will take effect on November 1, 2021. Investors remain concerned that China’s regulatory tightening will affect other market sectors, including fintech, gaming and education, reported Hudson Lockett of the Financial Times.

“American investors’ shock at an ongoing regulatory crackdown in China points to a fundamental difference between the two countries,” reported Evelyn Cheng of CNBC. “…whereas the U.S. system is designed to let corporations influence the government, China’s system is designed to bring corporations in line with government goals.”

Major U.S. stock indices finished the week lower. The yield on 10-year U.S. Treasuries finished the week where it started.

Picking the right place to live…The COVID-19 pandemic caused many people to reconsider how and where they want to live. People relocate for a variety of reasons. They may want to be closer to family and friends, live in a more affordable place with lower taxes or have better employment opportunities.

Another reason people relocate is climate. While many people move to regions with better climates, today they also are avoiding areas with high climate risk, reported a 2021 survey from RedFin.

 “About half of respondents who plan to move in the next year said extreme temperatures and/or the increasing frequency or intensity of natural disasters played a role in their decision to relocate. More than a third (36%) said rising sea levels were a factor.”

Those who planned to move and lived in the northeastern and southern U.S. were most concerned about the frequency and intensity of natural disasters, while those in the West were most concerned about extreme temperatures. The two factors tied for most serious concern in the Midwest.

The importance of climate change to relocation decisions varied by age. People age 55 and older were less likely to factor climate risk into relocation decisions, while younger respondents, especially 35- to 44-year-olds, prioritized climate risk issues.

When all respondents, regardless of whether they intended to move, were asked whether natural disasters, extreme temperatures or rising sea levels would affect their decision to buy a home, the majority said they would hesitate to buy homes in areas with these issues (79%, 75% and 76% respectively).

Home buyers aren’t the only ones thinking about climate risks. A real estate developer told Swapna Venugopal Ramaswamy of USA Today, “…real estate investors such as banks and insurance companies used climate risk data to inform their investing decisions.”

It seems that climate risk is becoming a factor in personal and business investment decisions.

Weekly Focus – Think About It
“The evidence on climate risk is compelling investors to reassess core assumptions about modern finance… . Will cities, for example, be able to afford their infrastructure needs as climate risk reshapes the market for municipal bonds… . How can we model economic growth if emerging markets see their productivity decline due to extreme heat and other climate impacts? Investors are increasingly reckoning with these questions and recognizing that climate risk is investment risk.”
— Larry Fink, Chairman and Chief Executive Officer of BlackRock

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.barrons.com/articles/stock-market-today-51629283162?mod=article_inline (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-23-21_Barrons_Stocks%20End%20the%20Day%20in%20Ugly%20Way_1.pdf)
https://www.census.gov/retail/marts/www/marts_current.pdf
https://www.npr.org/2021/07/13/1015754832/inflation-is-the-highest-its-been-in-nearly-13-years
https://www.barrons.com/articles/demand-slowdown-depleted-inventories-51629480605 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-23-21_Why%20Slowing%20Demand%20Might%20Be%20Good%20Thing_4.pdf)
https://www.ft.com/content/c5572f5a-d086-4ca2-995a-7b559f4e1d32 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-23-21_Financial%20Times_Tech%20Sell-off%20Pushes%20Hong%20Kong%20Stocks_5.pdf)
https://www.cnbc.com/2021/08/19/lobbying-china-firms-cant-influence-government-like-us-companies-do.html
https://www.barrons.com/articles/dow-sp-500-stock-market-news-51629505091?refsec=the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-23-21_Barrons_Stocks%20Survive%20a%20Taper%20Scare_7.pdf)
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
https://www.redfin.com/news/climate-change-migration-survey/
https://finance.yahoo.com/news/turning-faucets-source-stress-climate-040103089.html [Click on ‘Story Continues’]
https://www.blackrock.com/ch/individual/en/larry-fink-ceo-letter

What is the most important driver of economic growth in the United States?

The most common way to measure economic output is Gross Domestic Product or GDP. It’s the value of all goods and services produced in our country over a specific period of time. GDP is a combination of the following:

·         Government spending

·         Business investment

·         Consumer spending

·         Net exports (Exports minus imports).

In June, U.S. GDP was almost $23 trillion, reported the Bureau of Economic Analysis.

A trillion is a difficult number to comprehend. Jerry Pacheco of KRWG explained the amount like this, “If you laid one billion dollars side by side like tile, they would cover about four square miles. A trillion dollars laid out the same way would cover approximately 3,992 miles, or 1,000 square miles larger than the states of Rhode Island and Delaware combined.”

Twenty-three trillion dollars would cover Rhode Island, Delaware, Connecticut, Hawaii, New Jersey, Massachusetts, New Hampshire, Vermont, Maryland, West Virginia and part of South Carolina.

U.S. GDP grew by 6.5 percent annualized in the second quarter of 2021. Consumer spending was up 7.8 percent, while government and business spending were down, along with net exports. It’s not unusual for net exports to decline because the U.S. imports more than we export. Overall, consumer spending accounted for almost 69 percent of the economy.⁵ So, the answer to the initial question is that consumer spending is the most important driver of economic growth in the United States.

Consumers tend to spend when they feel confident. Last week, we learned that consumers are feeling a lot less confident than they were in July. Richard Curtin of the University of Michigan Consumer Sentiment Survey reported:

“Consumers reported a stunning loss of confidence in the first half of August. The Consumer Sentiment Index fell by 13.5% from July…The losses in early August were widespread across income, age and education subgroups and observed across all regions. Moreover, the loses covered all aspects of the economy, from personal finances to prospects for the economy, including inflation and unemployment. There is little doubt that the pandemic’s resurgence due to the Delta variant has been met with a mixture of reason and emotion.”

The seven-day moving average of new U.S. COVID-19 cases has been rising since early July, reported Our World in Data.

All eyes on digital currency…It seems as though everyone is talking about digital currencies these days. Among the topics being discussed are:

1.    Should the Federal Reserve issue a central bank digital currency (CBDC)?

2.    Should digital currencies be better regulated?

In July, Federal Reserve Chair Jerome Powell confirmed that he is undecided about whether the Federal Reserve should issue a CBDC, reported Ann Saphir and Dan Burns of Reuters. He indicated that digital currencies have failed to become a widely accepted means of payment, although a CBDC would eliminate the need for private digital money, especially digital currencies that claim to be pegged to the U.S. dollar. Chris Matthews of MarketWatch explained: 

“Critics of stablecoins say they pose significant risks to financial stability, especially after it was revealed that some of these dollar-pegged tokens are not backed by actual U.S. dollars, but a combination of riskier assets…[Chair] Powell said in a congressional hearing that regulators need to apply rules to stablecoins that are similar to those that govern bank deposits and money market mutual funds.”

Congress and the Securities and Exchange Commission (SEC) are both considering ways to regulate digital currency. The pending bipartisan infrastructure bill includes tax-reporting requirements for cryptocurrency brokers. If the bill passes without changes, digital currency sales would be reported to the IRS in much the same way that stock sales are. The change is expected to generate about $28 billion in taxes over a decade to help pay for infrastructure, reported Marcy Gordon of AP News.

In addition to tax regulation, digital currencies may become subject to greater securities regulation. In early August, SEC Chair Gary Gensler discussed the need for cryptocurrency regulation at the Aspen Securities Forum. He said:

“As new technologies come along, we need to be sure we’re achieving our core public policy goals. In finance, that’s about protecting investors and consumers, guarding against illicit activity, and ensuring financial stability… at our core, we’re about investor protection. If you want to invest in a digital, scarce, speculative store of value, that’s fine. Good-faith actors have been speculating on the value of gold and silver for thousands of years…I believe we have a crypto market now where many tokens may be unregistered securities, without required disclosures or market oversight. This leaves prices open to manipulation. This leaves investors vulnerable.”

It seems that changes are coming for the cryptocurrency market.

Weekly Focus – Think About It
“Humans are allergic to change. They love to say, ‘We’ve always done it this way.’ I try to fight that. That’s why I have a clock on my wall that runs counter-clockwise.”
― Grace Hopper, U.S. Navy Rear Admiral and computer pioneer

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:

https://www.thebalance.com/components-of-gdp-explanation-formula-and-chart-3306015
https://www.bea.gov/sites/default/files/2021-07/gdp2q21_adv.pdf [Table 1]
https://www.krwg.org/post/how-much-trillion-dollars
https://statesymbolsusa.org/symbol-official-item/national-us/uncategorized/states-size
https://www.bea.gov/sites/default/files/2021-07/gdp2q21_adv.pdf [Table 3: PCE (billions of dollars) / GDP (billions of dollars)]
https://www.investopedia.com/terms/c/consumer-sentiment.asp
http://www.sca.isr.umich.edu/
https://ourworldindata.org/explorers/coronavirus-data-explorer?zoomToSelection=true&time=2020-03-01..latest&facet=none&pickerSort=asc&pickerMetric=location&Metric=Confirmed+cases&Interval=7-day+rolling+average&Relative+to+Population=true&Align+outbreaks=false&country=~USA
https://www.barrons.com/articles/dow-stock-market-sp-500-51628901659?mod=hp_LEAD_2 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-16-21_Barrons_The%20Stock%20Market%20Keeps%20Hitting%20New%20Highs_9.pdf)
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
https://www.reuters.com/business/finance/feds-powell-says-hes-undecided-central-bank-digital-currency-2021-07-15/
https://www.marketwatch.com/story/yellen-to-convene-meeting-of-u-s-financial-regulators-to-discuss-stablecoins-11626451210
https://apnews.com/article/technology-joe-biden-business-bills-cryptocurrency-92628a41124230448f65fdeb89ffad7d
https://www.sec.gov/news/public-statement/gensler-aspen-security-forum-2021-08-03
https://www.thoughtco.com/grace-hopper-quotes-3530092

Are we there yet?

For months, investors have wondered when the Federal Reserve (Fed) might begin to “normalize” its policies, a process that will eventually lead to higher interest rates. Last week, a better-than-expected unemployment report – showing a gain of almost a million jobs – sparked speculation about whether we’ve arrived at that point. It’s difficult to know.

When the pandemic arrived, the Fed adopted policies that stimulated growth. It cut short-term interest rates to zero and began buying Treasuries and agency mortgage-backed securities to keep long-term rates low, too. Low rates make borrowing less expensive for businesses and individuals, reported the Brookings Institute. That’s important in economically challenging times.

In late July, the Fed said it would continue to keep rates low and buy bonds until it saw “substantial further progress toward maximum employment and price stability [inflation] goals.”

The Fed may have already achieved its inflation goal. Its favorite inflation gauge is called Personal Consumption Expenditures (PCE), excluding food and energy. It’s a statistic that reflects changes in how much Americans are paying for goods and services. In June, the Bureau of Economic Analysis reported that PCE was up 3.5 percent year over year. That’s well above the Fed’s two percent inflation target; however, the Fed’s new policy is to overshoot its target before raising rates.

If July’s employment numbers satisfy the Fed’s expectations for progress on jobs, the Fed may begin the process of normalizing monetary policy. The first step would be purchasing fewer bonds, a practice known as tapering. “Many market watchers are looking for [Fed Chair] Powell to discuss tapering at the central bank’s big policy meeting at Jackson Hole, Wyo., this month,” reported Randall Forsyth of Barron’s.

​WHAT’S MAKING US MORE PRODUCTIVE? While the United States has not yet recovered all of the jobs lost during the pandemic – 22 million were lost and 16.6 million have returned – productivity is higher than it was when more people were employed.⁸ The Economist reported:

“Though output reached a new high in the second quarter, employment remained more than 4 percent below its pre-pandemic level… . At present, America is producing more output than it managed just a year and a half ago, with roughly 6 [million] fewer workers.”

Higher productivity undoubtedly reflects the ingenuity of American businesses. The pandemic forced companies to find ways to remain productive. In response, many adopted new technologies, implemented new patterns for working, and changed their business models.

However, not all companies have experienced gains in productivity, reported Eric Garton and Michael Mankins in the Harvard Business Review. Those that proved to be the best at managing time, talent and energy – the top 25 percent of companies – were 40 percent more productive than other companies. (The productivity of companies in the lower quartiles was averaged to make the comparison.)

Not all sectors of the economy are equally productive, either. “The surge in output per worker also reflects the changing mix of the workforce. Employment in the leisure and hospitality industries, where productivity tends to be low, remains about 10 percent below the pre-pandemic level, compared to a 3 percent shortfall in the higher-productivity manufacturing sector,” reported The Economist. As less productive sectors recover, productivity may return to previous levels.

In the meantime, some employees have been wondering whether it’s necessary to return to the workplace when productivity has been high while they’ve been working remotely. In an early July survey conducted by The Conference Board, a majority (56 percent) of employees asked whether returning to the workplace was wise, but just 18 percent of chief executive officers shared the concern.

Weekly Focus – Think About It
“Whenever you are asked if you can do a job, tell ’em, ‘Certainly I can!’ Then get busy and find out how to do it.”
—Theodore Roosevelt, 26^th president of the United States

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Sources:
https://www.barrons.com/articles/jobs-report-covid-19-fed-policy-51628296221 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-09-21_Barrons_Good%20News%20on%20Jobs_1.pdf)
https://www.brookings.edu/blog/up-front/2021/07/15/what-does-the-federal-reserve-mean-when-it-talks-about-tapering/
https://www.federalreserve.gov/newsevents/pressreleases/monetary20210728a.htm
https://www.bea.gov/news/2021/personal-income-and-outlays-june-2021-and-annual-update
https://research.stlouisfed.org/publications/economic-synopses/2021/05/19/two-percent-inflation-over-the-next-year-should-you-take-the-over-or-the-under
https://www.barrons.com/articles/stock-market-bubble-2021-51628296340?mod=hp_DAY_7
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-09-
1_Barrons_The%20Stock%20Market%20is%20In%20a%20Bubble_7.pdf)
https://www.economist.com/finance-and-economics/2021/08/07/americas-roaring-recovery-might-carry-lessons-for-future-recessions (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-09-21_Economist_Amercas%20Roaring%20Recovery_8.pdf)
https://hbr.org/2020/12/the-pandemic-is-widening-a-corporate-productivity-gap
https://conference-board.org/press/Return-to-Work-Survey-June2021
https://www.goodreads.com/quotes/tag/productivity