Broker Check
Market Update

Market Update

| October 20, 2021
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Increased uncertainty around the economy and other market drivers has contributed to recent swings in market pricing. Favorable news regarding the US economy returning to pre-pandemic levels and strong corporate earnings helped to drive the market higher during July and August. Additionally, the Federal Reserve has remained accommodative to date which has helped maintain an investor friendly environment. However, as September rolled around, the market tone became more uncertain. Corporations began to become more cautious, and some profit warnings began to surface based upon supply chain constraints. Also, political posturing regarding proposed tax legislation and the ever-present debt ceiling also added pressure.

So far, we have seen a strong market rebound in October from the September lows. We feel that the current market volatility will continue during the last quarter of the year, but markets should remain resilient during the period. While it may take longer than expected, improvement in supply chain bottlenecks will eventually develop and help to keep the economy moving forward. In the meantime, we will take advantage of opportunities that arise with any market fluctuations.

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