Wealth Management News and Updates
September Market Insight
With Labor Day a distant memory, the relative calm of summer has given way to increased anxiety. The domestic stock market has continued to move upward with more confidence ascribed to large-cap companies. However, three factors are creating a more volatile environment.
First, the continued threat imposed by the COVID-19 delta variant has made investors more conscious of economic and market risk. Though vaccinations are clearly the answer, memories of 2020 shut-downs and vast unemployment remain vivid.
Second, China’s government has suggested that several of their own companies, particularly those within the IT industry, are perhaps too permissive and too “western” in their vision and revenue path. This is causing global investors some concerns as the westernized financial markets in both China and Hong Kong could sustain consequences with any change.
And lastly, the recent tax proposals suggested by the current U.S. administration in power have unambiguously targeted not only the wealthiest U.S. citizens but also many individuals and families segmented as merely affluent. The markets are reacting to the number of people who could be affected by the proposed tax changes and resultant economic impact. Despite these potential obstacles, U.S. unemployment continues to improve. The Federal Reserve remains fully accommodative even though we will see a gradual reduction in monetary stimulus.
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