The Pulse on the Economy and Capital Markets: Sept 27– Oct 01, 2021

October 5, 2021


At a glance:

Financial markets were weak signaling rising concerns about inflation. We received higher core inflation readings, excluding food and energy. We’re potentially seeing company earnings getting pinched, leaving fingers crossed awaiting 3rd quarter earnings.

  • Overall, both the bond and equity markets were down, but the S&P 500 saw a small gain in the 3rd quarter
  • The Personal Consumption Expenditures Core metrics signal inflation with a spike not seen since the early 90s.
  • Employee compensation Y0Y is highest since the early 80s, used car prices and commodities also point to inflation ahead.
  • Higher costs are potentially starting to impact company earnings. We’ll learn the extent of the impact in the next few weeks as companies announce 3rd quarter earnings.
  • Meanwhile, we are reading about the crash of Ozy Media, Ethereum’s tough September and rally opportunity, and how big tech will save office real estate.

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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 5th, 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.

This commentary contains certain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements for any reason.

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About the Author

Simeon Wallis

Simeon is the Chief Investment Officer of Aprio Wealth Management and the Director of Aprio Family Office. Simeon brings two decades of professional investing experience in publicly traded and privately held companies, as well as senior-level operating and strategy consulting experiences.