MWM Weekly Update

The Week of June 14, 2021

MWM Weekly Update

The Week of June 14, 2021

“Acknowledging the good that you already have in your life
is the foundation for all abundance.”

Eckhart Tolle

Greetings Everyone,

On Sunday it rained and rained some more with over two inches flooding the earth around our house. It was the first real rain for many weeks and although I needed an umbrella to go outside, it was welcome. I am grateful for the rain and grateful too for so many other blessings.

Did you know that gratitude was one of the best coping mechanisms you could have during the pandemic? We became more aware of how important family, friends and business associates were, and how much we needed to reach out virtually and in other ways to touch them.

According to an article by Gina Hamadey in the June/July issue of Elle magazine, our collective instincts are clearly on to something: Studies show gratitude helps in tough times, and it’s proven especially comforting in the past year. In December 2020, the U.K.’s University of Surrey posed the question, what coping mechanism was the most helpful during lockdown: focusing on nostalgia, gratitude for the present, or hope for the future? It found that gratitude and optimism were far more important.

“Sitting with any feeling, whether positive, neutral, or negative, has the potential to rewire our neural connections due to our neuroplastic brains,” explains Bret Stetka, author of A History of the Human Brain. “When we use any brain network—whether for riding a bike or playing a guitar—those neuronal connections are strengthened and more easily called upon. Expressing gratitude and sitting with your positive feelings towards others bolsters these networks, making it easier for the brain to access that warmth.”

Recently we received a handwritten thank you note for birthday flowers we sent to a 97-year-old client. She, like others of her generation, was raised with this practice of social etiquette. Although traditions have changed, being the recipient of this very special handwritten note brightened my day and gave me pause to be grateful for people like this in my life. Anytime someone takes the time to send a handwritten note, it is treasured.

Judith McGee, L.H.D., CFP®, ChFC

Executive Vice President and Senior Lead Advisor

In the Markets

  • Stocks were mixed last Monday, with the Russell 2000 (1.4%) and the Nasdaq (0.5%) gaining, while the Dow fell 0.4% and the S&P 500 and the Global Dow closed the day essentially unchanged. Treasury yields, crude oil prices, and the dollar fell. Communication services, health care, and real estate advanced, while materials, industrials, and financials dipped lower.
  • Gains by cyclicals, energy, real estate, and meme stocks helped propel the Russell 2000 (1.1%) and the Nasdaq (0.3%) higher last Tuesday. The Dow, the Global Dow, and the S&P 500 were little changed for the second consecutive session. Treasury yields fell, while the dollar advanced. Crude oil prices climbed 1.4%, driving prices to over $70.00 per barrel — the highest price this year.
  • Last Wednesday saw stocks post gains early in the day, only to dip by the close of trading. Bond prices rose, pulling yields lower. The 10-year Treasury yield closed below 1.50% for the first time since the beginning of March. The dollar declined, while crude oil prices were little changed. Each of the major benchmark indexes lost value, with the Russell 2000 dropping nearly 0.75%, while the large caps of the Dow and the S&P 500 declined 0.4%. Among the market sectors, health care and utilities outperformed, while financials and industrials each fell nearly 1.0%.
  • Stocks closed last Thursday higher, with the S&P 500 reaching a record closing high. Investors apparently looked beyond another increase in consumer prices (the Consumer Price Index rose 0.6% in May), instead betting that the Federal Reserve will maintain its accommodative policies. Tech shares and mega caps advanced, helping to push the Nasdaq up 0.8%. The S&P 500 rose 0.5%, while the Global Dow and the Dow ticked up 0.1%. The small caps of the Russell 2000 fell 0.7%. Most of the market sectors advanced, led by health care, real estate, information technology, and communication services. Financials, industrials, materials, and energy lost ground. The yield on 10-year Treasuries continued to slip, falling to 1.46%, while crude oil prices rose. The dollar was mixed.
  • Last Friday saw stocks continue to tick higher following Thursday's advance. The Russell 2000 reversed course from Thursday to post a solid 1.1% gain on Friday. The Nasdaq gained 0.4%, the S&P 500 edged up 0.2%, and both the Dow and the Global Dow inched up 0.1%. Treasury yields, crude oil prices and the dollar advanced. Financials, information technology, consumer discretionary, and materials led the sectors, while health care and real estate fell.
  • Stocks closed generally higher last week, with the Russell 2000 and the Nasdaq leading the benchmark indexes, followed by the S&P 500. Both the Dow and the Global Dow lost value. Among the market sectors, health care, real estate, consumer discretionary, utilities, and information technology notched weekly gains, while financials, industrials, and materials lost ground. The dollar rose moderately, Treasury yields dipped, and crude oil prices climbed again and have risen more than 45.0% year to date.

Several market-moving economic reports are out this week. Inflation is the focus with the Producer Price Index and prices for imports and exports. The Federal Reserve's industrial production report for May is also available. Manufacturing has been picking up steam with the easing of pandemic-related restrictions. Investors seem to be waiting to see if the Group of Seven (G-7) agree to impose levies on big firms to help participating countries collect more taxes. Also, investors will be watching for signs from the Federal Open Market Committee, which meets this week, that fiscal stimulus will remain in place, despite rising inflationary pressures.

Source: Broadridge Investor Communication Solutions, Inc.

Articles & Education

Investing and Politics – Are They Connected?

The midterm results suggest there will be few policy changes in Washington during the next two years.

Giving Thanks this Holiday Season

Thanksgiving is an excellent time to talk to family about philanthropy and meaningful gifting. Here’s a few ideas to get started.
Investment Term of the Week

Thought of the Week

Investment products are: Not deposits. Not FDIC or NCUA Insured. Not guaranteed by the financial institution. Subject to risk. May Lose Value.The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Asset allocation and diversification do not ensure a profit or guarantee against loss.

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The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index. The Global Dow is an equal-weighted stock index. It is composed of the stocks of 150 top companies from around the world as selected by Dow Jones editors and based on the companies' long history of success and popularity among investors.

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Making Life a Richer Experience