The Pulse on the Economy and Capital Markets: Oct 11 – Oct 15, 2021

At a glance:

• Overall, markets showed a strong start to earnings season as bank executives are positive about the health of the economy.
• It’s a good week to be an investor as markets were higher across the board. All reporting banks noted the performance of loans and credit risks are improving. JPMorgan Chase increased their loans by 5% for the second consecutive quarter. It’s expected other banks will soon follow their lead.
• Bitcoin and copper rallied on rising inflation. Historically, copper moves with inflation expectations and this week copper was up nearly 16% month-to-date. Bitcoin has also traded higher with inflation expectations up nearly 44% since the end of September.
• Staffing and labor shortages remain for small businesses and consumer-related industries as they face higher than average 4.6% unemployment rates. Labor participation rates remain below pre-COVID levels as the number of women in the workforce declines due to a lack of work-life flexibility.
• Meanwhile, we are reading about a potential halt in the housing market if rates rise as little as four percent, the CEO of JPMorgan Chase optimism about of the US economy, Zillow’s pivot into tech-powered house-flipping hitting a snag and Apple’s plans to cut iPhone 13 production by as many as ten million due to chip shortages.

Related resources

• Will 4% Mortgage Rates “Halt the Housing Market?”
• Jamie Dimon says worst of the pandemic may soon be over
• Apple to Cut iPhone Production Goals by as Many as 10 Million Units Due to Chip Shortages

Disclosures

Investment advisory services are offered by Aprio Wealth Management, LLC, a Securities and Exchange Commission Registered Investment Advisor.  Opinions expressed are as of the current date (October 19th, 2021) and subject to change without notice. Aprio Wealth Management, LLC shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. This commentary is for informational purposes only and has not been tailored to suit any individual. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment.

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