This week we will close out the third quarter and the month of September.
This comes on the back of last week’s volatility with the Dow down over 600 points on Monday before closing out the week recovering all of that loss to post a gain for the week.
For all the talk about a correction, we have completed 224 trading days since the last 5% correction which is the 9th longest streak since 1930.
Not to say there is nothing to be concerned about as Congress has to deal with the debt ceiling and determine if an infrastructure bill can be passed.
It should be noted that last week the 10-year Treasury climbed back above 1.5% while crude traded at $75.
Many are pointing to the reflation trade as energy companies like Exxon and Occidental showed strength.
The last time we were in this territory, technology stocks suffered.
It should be noted also that the Standard & Poor’s 500 stock-index is down for the month of September, but only 1.5%.
Hardly even mentioning, but it would be the first negative month since January.
There is all this concern of late as to the trouble the equities markets have in late September through mid October.
Even my daughter who would consider watching CNBC as some form of torture called to ask my opinion after the selloff last Monday.
I pointed out to her that she ignored the fact that the market completely recovered by the end of the week, but we all know how fear works.
It is all about the bad news.
Though still a factor in the economic recovery, the number of new Covid cases dropped last week. I have no idea what I will do about a booster shot.
I sincerely believe in following the science, but we get a different opinion every day.
I also am one of those that had the one shot Johnson & Johnson shot. You have Moderna and Pfizer shots but don’t think you should change horses in mid-stream. Maybe all of this is yesterday’s news like last Monday’s sell off. On to the next chapter at full speed ahead.
I do know that we are full into the holiday season as my neighbor keeps adding daily to their Halloween decorations.
It is still too hot in Bushwood for me to get in any Holiday spirit but I know there are many who are pawing at the earth to get going. That can only be good for the economy assuming the supply chain will allow goods to reach the retail outlets.
The numbers of container boats docked now for weeks off our east and west coast ports does give one pause.
That lay-a-way may not be able to redeemed until Easter. As always a bit of good news along with the rest of the bad news.
