Weekly Snapshot September 15th, 2021
Market Review: Week Ending 9/10/2021
The markets paused this week as various concerns over reopening momentum, higher taxes, and inflationary pressures along with high valuation and sentiment levels led investors to review and retrench their positions. For the week, the Dow Jones Industrial Average (DJIA) fell -2.11%. The S&P500 Index (S&P500) declined -1.68% and the NASDAQ Composite (NASDAQ) dropped -1.66%. Leading the markets lower was the Russell 2000 Index (R2000) falling -2.80%. Even with these declines, year-to-date market returns are still soundly positive (DJIA +14.63%, S&P500 +19.91%, R2000 +13.50%, and NASDAQ +17.82%). During the week, the Russell 1000 Growth Index (-1.50%) outperformed the Russell 1000 Value Index (-2.03%) due to slowing economic growth expectations. On a year-to-date basis, growth has advanced +19.94% versus its value counterpart +18.18%.1 Within S&P 500 sectors, outperformers for the week were Consumer Discretionary -0.33%, Communications Services -1.20% and Consumer Staples -1.26% while sector underperformers were REITs -3.97%, Healthcare -2.73%, and Industrials -2.52%.2
The downshift in economic growth and its lower expectations can be seen in the recent performance of various industries and commodities. Since its peak in May, copper prices have fallen over 10% while both the S&P500 Transportation and Homebuilding Indexes are down 11%.3 However, a more balanced investment profile is expected as the Delta variant runs its course and is in the rear-view mirror.
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- Consumer Price Index – U.S Bureau of Labor Statistics
- Industrial Production – U.S. Federal Reserve
- Retail Sales – U.S. Census Bureau
- Unemployment Claims – U.S. Department of Labor
- University of Michigan Index of Consumer Sentiment
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
Sources:
1 JPMorgan Weekly Market Recap – 9/13/2021
2 FactSet – 9/10/2021
3 Edward Jones Weekly Market Wrap – 9/10/21
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.
