What To Expect in the Stock Market This Week (September 13 - 17)
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CR7 Returned to the Premier League and Man U with a VENGEANCE. He scored a brace (soccer term for 2 goals) against Newcastle United. It was glorious!!
United won the game 4-1 with Bruno Fernandes scoring a sick 25 yard strike to the top corner. Things are looking rather beautiful for Man U right now. They better keep it up and win the league this season.
Now to stocks.
Last week the Market did NOT finish at All-Time highs. It actually declined for the entire week. September doing its best to live up to its name of being the worst month for stocks.
Honestly, I think the market still has more room to fall this year but I doubt that'll actually happen. Also, I can't tell you what exactly caused the market to pull back cause the same news that previous caused the market to push up aka horrible job numbers. Did the exact opposite this week.
Maybe it was inflation numbers from producers being at a crazy high point (8.3% increase year over year). Showing the supply chain continues to be absolutely destroyed. Maybe it's the continued rise in Covid cases (130,000 new cases per day) and even more importantly deaths (1500/day).
Point is, there are a lot of different factors that play into market prices (mainly the fact that human beings are involved and as we know we are not exactly rational). This is why you can never believe anyone that points to one specific thing as the reason the markets rise or fall. Things are much more complicated than one simple answer allows for.
But with all that being equity (stocks) flows continue to rise.
2021 is on a record pace for annual stock flows. Right now $1.04 trillion has gone into equities. To put it into perspective; More money has been invested in stocks this year than from 2001-2020 combined.
My advice: Stay invested and KEEP investing.
Especially for those who are investing through passive investments like 401(k) or IRA and doing regular buying of index funds. But I will also say; be very careful if you are doing anything more like picking Single Stocks. Always remember the words of Warren Buffett
Seems the world has gotten a lot greedier this year.
On the Economic front
Tuesday, we get the Consumer Price Index numbers which tells us inflation for the month of August. The index had shown a fall from 4.5% in June to 4.3% in July. Expectation is for the fall to continue but fear of Stagflation is increasing as hiring numbers decline for August.
The Number I actually care about is coming out on Friday. That number being the Consumer Sentiment Index for August. This number is much more important to me cause at the end of the day the economy runs based on how people feel a lot more than other factors. So it'll be interesting to see if people have railed in their spending. We already see Ford and GM announce a reduction in sales expectation for the year. Plus Airlines are reducing number of flights.
Remember, we talked about the Fed tapering last week. Well the ECB. the European Central Bank (aka European Union’s version of the Federal Reserve), announced Tapering but said it not tapering, I made a TikTok about it.
I thought we would see something similar from the Fed but with all the negative news due to Covid I don't think we'll be seeing them announce anything. Any time soon. Taper probably won’t be happening until next year by my predictions. Which will mean the Stock Market party will continue for the rest of 2021.
I hope you all have A WONDERFUL week. I will have another post on Wednesday. You can also catch me on TikTok, Instagram, and YouTube everyday.
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Remember GENEROSITY > greed
God bless Each and Everyone of y’all
✌🏾
-Kelechi