Take a look at last week’s market recap from Joe Gallemore, CIMA® Partner & Director of Investment Management for Argent Bridge Advisors. Watch the video now!
Joe’s Notes:
- After being mixed but relatively flat the week before Labor Day, Indexes moved lower by modest amounts the recent week ending Sept 10th.
- The relative calm of the previous week, I believe, reflects an absence of major headlines regarding three factors the market is very much focused on right now: Covid Delta variant, current economic data (to measure if growth will slow down), and the Fed’s policy actions in reaction to inflation.
- That absence of headlines was also the case for this past week, but the returns were uniformly negative. This tells me that it must be mostly profit-taking by investors from the market’s recent all-time highs.
- One important thing to notice is that the US Aggregate Bond index was almost completely flat over this two-week span (-0.04%) and barely moved at all in the second week when equity markets were negative. This is significant because it implies that the decline in stock indexes was not driven by fear or economic downturn. If either of those were the case, bonds would most likely have moved up. Again, this is a good thing because it supports the likelihood that last week’s decline was just profit-taking which is a normal, healthy function of bull markets.
