Weekly Snapshot September 22nd, 2021
Market Review: Week Ending 9/17/2021
Market volatility continued this week as investors worried about headlines in China, inflation levels, corporate profit margins, elevated valuations, and concerns over the eventual tightening in fiscal and monetary policies. For the week, the Dow Jones Industrial Average (DJIA) fell -0.07%. The S&P500 Index (S&P500) declined -0.57%, and the NASDAQ Composite (NASDAQ) dropped -0.47%. Bucking this trend was the Russell 2000 Index (R2000) which increased +0.42%.1 Given its lower volatility and defensive characteristics, the Russell 1000 Value Index (-0.33%) outperformed the Russell 1000 Growth Index (-0.55%)2. Within S&P 500 sectors, outperformers for the week were Energy +3.31%%, Consumer Discretionary +0.54% and Financials -0.09% while sector underperformers were Materials -3.22%, Utilities -3.11%, and Industrials -1.56%.2
Although the market volatility has raised investor concern, the investment creed “Buy the Dips” is still in place. For the week ended – September 15th, market flow data from Bank of America revealed massive inflows into U.S. Equities ($40Billion) and outflows in Money Markets ($62Billion) – the most since March 2021.3
Historically, during every bull market, there are always times when equities tread water. During the last bull market (2009-2020), there were several phases in which equities pulled back over 5%. Periodic pauses are normal, and in the last three decades, there have only been two years (1995, 2017) in which the market didn’t experience a 5% pullback4. With the largest drawdown this year at 4%, 2021 could join that list.
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- U.S. Retail Sales – U.S. Census Bureau
- Manufacturing PMI – Purchasing Managers’ Index
- Initial Claims – U.S. Department of Labor
- U.S. New Home Sales – U.S. Census Bureau
- Federal Reserve Open Market Committee
As always, we appreciate your confidence in our team.
Fundamentum Investment Committee
John Nichol, CFA® – Chief Investment Officer
Trevor Forbes – Investment Committee
Robert Armagno – Investment Committee
1 FactSet – 9/17/2021
2 JPMorgan Weekly Market Recap – 9/20/2021
3 FactSet – 9/17/2021
4 Edward Jones Weekly Market Wrap – 9/17/21
Past performance is no guarantee of future results.
Investment advice offered through Fundamentum LLC a registered investment advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the investment objective of any investment strategy will be attained. Investing involves risk including loss of principal. Past performance is no guarantee of future performance. All indices are unmanaged and may not be invested into directly.