• Categories

Weekly Investment Update

<!– {"name":"Weekly Investment Blog","type":"layout","children":[{"name":"Top Image (Featured Image)","type":"section","props":{"style":"default","width":"default","vertical_align":"middle","title_position":"top-left","title_rotation":"left","title_breakpoint":"xl","image_position":"center-center","height":"full","padding_remove_top":false,"padding_remove_bottom":false,"image_size":"cover","padding":"xlarge","image_effect":"parallax","image_parallax_bgy_end":"100","image_parallax_bgy_start":"-100","animation":"fade","animation_delay":true,"image_parallax_breakpoint":"m","image_width":"1560"},"children":[{"name":"","type":"row","props":{"layout":"1-3,2-3","divider":true,"vertical_align":true},"children":[{"name":"","type":"column","props":{"image_position":"center-center","vertical_align":"middle","media_overlay_gradient":"","width_small":"1-3"},"children":[]},{"name":"","type":"column","props":{"image_position":"center-center","text_color":"light","vertical_align":"middle","media_overlay_gradient":"","width_small":"2-3"},"children":[]}]}],"source":{"query":{"name":"posts.singlePost"},"props":{"image":{"name":"featuredImage.url","filters":{"search":""}}}}},{"name":"Blog Content","type":"section","props":{"style":"default","width":"default","vertical_align":"middle","title_position":"top-left","title_rotation":"left","title_breakpoint":"xl","image_position":"center-center","padding":"large","padding_remove_bottom":false,"animation_delay":false},"children":[{"name":"","type":"row","props":{"layout":"1-3,2-3","vertical_align":false},"children":[{"name":"","type":"column","props":{"image_position":"center-center","media_overlay_gradient":"","width_small":"1-3"},"children":[{"type":"image","props":{"margin":"default","image_svg_color":"emphasis","image":"wp-content\/uploads\/sites\/8\/2020\/06\/Trans_Blue-Crown.png"}},{"name":"","type":"headline","props":{"title_element":"h2","title_decoration":"bullet","title_style":"h3"},"source":{"query":{"name":"posts.singlePost"},"props":{"content":{"filters":{"search":"","date":""},"name":"date"}}}},{"name":"","type":"headline","props":{"title_element":"h2","title_decoration":"bullet","title_style":"h3"},"source":{"query":{"name":"posts.singlePost"},"props":{"content":{"filters":{"search":""},"name":"author.nickname"}}}},{"type":"list","props":{"show_image":false,"show_link":true,"image_svg_color":"emphasis","image_align":"left","image_vertical_align":true,"list_size":"","list_element":"ul","column_breakpoint":"m"},"children":[{"type":"list_item","props":{"content":"

Categories”}},{“type”:”list_item”,”source”:{“query”:{“name”:”categories.customCategories”,”arguments”:{“id”:0,”offset”:0,”limit”:10,”order”:”term_order”,”order_direction”:”ASC”}},”props”:{“content”:{“name”:”name”,”filters”:{“search”:””}},”link”:{“name”:”link”,”filters”:{“search”:””}}}}}],”name”:”Blog Category List”}]},{“name”:””,”type”:”column”,”props”:{“image_position”:”center-center”,”media_overlay_gradient”:””,”width_small”:”2-3″},”children”:[{“type”:”headline”,”props”:{“title_element”:”h1″,”content”:”Weekly Investment Update”},”source”:{“query”:{“name”:””},”props”:{“_condition”:{“filters”:{“condition”:”!!”},”name”:”title”}}}},{“name”:””,”type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

US equity markets, as measured by the S&P 500 index, continued to push into record territory last week, with Friday\u2019s index close above 3,500, which equates to a 10% year-to-date total return[1].\u00a0 Likely the biggest catalyst for last week\u2019s 3% gain was the Federal Reserve\u2019s announcement that it is updating how it manages inflation.\u00a0 Federal Reserve Chair, Jerome Powell, confirmed Thursday in a press conference that the Fed will move toward an approach of \u201caverage inflation targeting\u201d, which will permit the group to allow inflation to run \u201cmoderately\u201d above target \u201cfor some time\u201d[2].\u00a0 The key implication for market participants is that low and accommodative interest rate policy from the Fed will be the norm for longer than otherwise expected.\u00a0 The news was not so positive for fixed income investors as long-term Treasury bond prices declined.\n

This week, investors will be closely tracking the US labor economy when initial claims for unemployment insurance benefits and continuing jobless claims are announced Thursday, and the August employment report, which includes the unemployment rate, will be released Friday.\u00a0 Despite many parts of the US equity market climbing back to new highs, the US employment picture is still challenged.\u00a0 It may be important to see continued improvement in Thursday and Friday\u2019s data to support equity markets at their current levels.\u00a0 Last week, more than 1 million people filed for initial unemployment benefits, which has occurred every week but one since late March, and more than 14 million people filed continuing claims.\n

\n

\u00a0″},”source”:{“query”:{“name”:””},”props”:{}}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”image”:”wp-content\/uploads\/2020\/09\/Continuing-Claims-for-Unemployment-Insurance_8.31.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”text_size”:”small”,”content”:”

Source: St. Louis Federal Reserve”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

\u00a0\n

Key Economic Releases This Week”}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”image”:”wp-content\/uploads\/2020\/09\/Economic-Releases_8.31.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”text_size”:”small”,”content”:”

Source: MarketWatch”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

Asset Class Returns”}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”image”:”wp-content\/uploads\/2020\/09\/Asset-Class-Returns_8.31.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”text_size”:”small”,”content”:”

Source: Morningstar
As of August 28, 2020″}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

Prices & Interest Rates”,”position_bottom”:”0″}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”text_align”:”left”,”image”:”wp-content\/uploads\/2020\/09\/Prices-and-Interest-Rates_8.31.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”text_size”:”small”,”content”:”

Source: Bloomberg, US Treasury
As of August 28, 2020″}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”text_size”:”small”,”content”:”

[1] Source:\u00a0 Morningstar\n

[2] https:\/\/www.cnbc.com\/2020\/08\/27\/powell-announces-new-fed-approach-to-inflation-that-could-keep-rates-lower-for-longer.html”}},{“type”:”html”,”props”:{“content”:”

“}}]}]}]},{“name”:”Disclaimer”,”type”:”section”,”props”:{“style”:”muted”,”width”:”default”,”vertical_align”:”middle”,”title_position”:”top-left”,”title_rotation”:”left”,”title_breakpoint”:”xl”,”image_position”:”center-center”,”animation_delay”:false},”children”:[{“name”:””,”type”:”row”,”props”:{“column_gap”:”large”,”row_gap”:”large”},”children”:[{“name”:””,”type”:”column”,”props”:{“image_position”:”center-center”,”media_overlay_gradient”:””,”width_medium”:”1-1″},”children”:[{“name”:””,”type”:”text”,”props”:{“margin”:””,”column_breakpoint”:”m”,”content”:”

Past performance may not be representative of future results. \u202fAll investments are subject to loss.\u202f Forecasts regarding the market or economy are subject to a wide range of possible outcomes. \u202fThe views presented in this market update may prove to be inaccurate for a variety of factors.\u202f These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. \u202fPlease contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.\u202f\u202f\u00a0″,”text_align”:”left”,”text_size”:”small”,”text_color”:”muted”}}]}]}]}],”version”:”2.2.2″} –>