The Markets
It’s MESSI!
No, this commentary is not about Lionel Messi, the Argentine soccer phenom who is widely regarded one of the greatest footballers of all time. However, it is about something that economists say may be as rare as Messi’s talent: Moderating Expansion with Sticky Supply-driven Inflation (MESSI).
The word “jouncy” may have started life as a combination of bouncy and jolting – and it’s a pretty good way to describe what happened to stock markets last week.
September strikes again…
If you look back over the last 20 years, September has been the worst-performing month for the Standard & Poor’s 500 Index, according to Nasdaq.
Weekly Market Commentary
September 27, 2021
Central banks have a lot of influence on investors, markets and economies.
In recent weeks, bullish sentiment has drifted lower like sediment settling after a storm.
The Delta variant could take a toll on economic growth.
There was some good news last week. The 7-day moving average of COVID-19 cases in the United States declined. The bad news was that the rate of infection remained about 99 percent higher than it was one year ago.
Stagflation isn’t trending, but it was mentioned in quite a few headlines last week.
Stagflation is a portmanteau of ‘stagnation’ and ‘inflation.’ It occurs when a country experiences slow economic growth along with high inflation and high unemployment. In the United States:
“Raise your words, not your voice. It is rain that grows flowers, not thunder,” advised the Persian poet Rumi.
Markets were shaken last week by a potent cocktail of central bank tapering and economic growth concerns mixed with coronavirus and a splash of the new Chinese privacy law.
What is the most important driver of economic growth in the United States?
The most common way to measure economic output is Gross Domestic Product or GDP. It’s the value of all goods and services produced in our country over a specific period of time. GDP is a combination of the following:
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