MWM Weekly Update

The Week of July 12 2021

MWM Weekly Update

The Week of July 12 2021

Greetings Everyone,

The game of life today feels like the game of Monopoly. Our lives feel almost normal again since we just received the “get out of the COVID jail card”. Travel plans are again being scheduled for the next several months and prices are on the rise.

People seem to be playing the real estate game card too by bidding properties up above their asking prices. Many property purchases require cash offers to even be considered. Builders have more work than they can handle but cannot get many products to complete the jobs. Windows are especially difficult to come by. Supply and demand play a big part in this current environment. More demand, less supply equals higher costs.

The Federal Reserve looks like its playing “Twister” as they taper bond purchases and manage interest rates with their eyes on inflation. We are entering a time of robust economic activity and potentially a record GDP for the rest of 2021.

However, you and I are playing the real game of life. Below we added a link to a short video I recently filmed talking about my own brick wall story. Life can come along and just hit you with something unexpected. It is one of the reasons our work as financial planners is so important as we help our clients manage whatever game life has in store?

Have you ever felt like you have hit a brick wall in your life? Judith shares how she has coped with this in the past. You are not alone.

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Did You Know?

There are over 3 million shipwrecks on the ocean floor and less than 1% of them have been explored. It is estimated that more than $60 billion of treasures are in these shipwrecks. What is everyone waiting for? Of course, there is more to it. Each diving expedition can cost millions of dollars, and it is uncertain what each shipwreck exactly holds and if it is worth the effort and cost.
Marshmallows used to be a delicacy for Gods and Royalty. As early as 2000 BC during ancient Egyptian times, they extracted sap from the mallow plants and mixed it with nuts and honey.

Judith McGee, L.H.D., CFP®, ChFC®
Executive Vice President and Senior Lead Advisor

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In the Markets

LAST WEEK

The holiday-shortened week can best be described as volatile. Some observers suggest investors may be retreating from stocks over uncertainties surrounding the pace of economic recovery coupled with easing inflation expectations. For much of the week, stock values rode a roller-coaster ride of ups and downs, while Treasury prices climbed, pulling yields lower.
The market was closed last Monday in observance of Independence Day. Last Tuesday saw the yield on 10-year Treasuries fall to 1.37%, their lowest level since February. Energy, materials, financials, and industrials fell. The Russell 2000 fell 1.4%, the Dow dropped 0.6%, the Global Dow lost 1.1%, and the S&P 500 dipped 0.2%. Only the Nasdaq was able to eke out a 0.2% gain. Crude oil prices declined, while the dollar advanced.
Stocks were mixed last Wednesday as the Nasdaq and the S&P 500 each closed with fresh record highs; the Dow gained 0.3% but the Russell 2000 and the Global Dow lost value. Rising prices on 10-year Treasury notes pulled yields lower to close at 1.32%. The dollar inched higher. The minutes from the last Federal Reserve meeting showed that policymakers were still cautious about the economic outlook and were willing to remain patient about making changes to current stimulus policies. Among the market sectors, energy fell, with crude oil prices falling to $74.72 per barrel. Industrials and materials continued to show strength.
Equities retreated last Thursday as the Nasdaq, the Dow, and the S&P 500 gave back gains from the previous day. Each of the major benchmark indexes lost at least 0.7%, with the Global Dow (-1.1%) and the Russell 2000 (-1.0%) falling the most. Prices on 10-year Treasuries continued to rise, with a corresponding drop in yields. Crude oil prices rose, while the dollar fell. Not unexpectedly, each of the market sectors declined, led by financials (-2.0%), industrials (-1.4%), materials (-1.4%), and communication services (-1.1%).
Stocks closed last Friday on a high note. Each of the major benchmark indexes posted solid gains, led by the Russell 2000, which jumped 2.2%, followed by the Global Dow (1.4%) and the Dow (1.3%). The yield on 10-year Treasuries advanced for the first time in eight sessions. Crude oil prices increased 2.4%, while the dollar dipped lower. Financials, energy, and materials were sectors that climbed at least 2.0% last Friday.
Otherwise, stocks closed the week with mixed returns. The Nasdaq, the Dow, and the S&P 500 closed out the week ahead, while the Global Dow and the Russell 2000 lost value. Treasury yields, crude oil prices, and the dollar declined. Gold increased 1.1% for the week.

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THIS WEEK

Inflationary indicators are front and center this week, with the latest reports on the Consumer Price Index and the Producer Price Index. The CPI increased 0.5% in May and is up 5.0% over the past 12 months. The PPI rose 0.8% in May and has climbed 6.6% since May 2020. If inflationary pressures are indeed transitory, as suggested by the Federal Reserve, then prices should begin to weaken somewhat over the next few months.

Source: Broadridge Investor Communication Solutions, Inc.

Articles & Education

Q3 Market Commentary

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More wealth has been lost due to human emotions and the lack of sound, disciplined financial planning than to any bear market. The good news is that risk is quite manageable with the help of a trusted advisor and an understanding of three dimensions of risk: our own personal tolerance, capacity, and need.

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Investment Term of the Week

Thought of the Week

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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.

Sector investments are companies engaged in business related to a speciﬁc sector. They are subject to ﬁerce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversiﬁcation. The companies engaged in the communications and technology industries are subject to ﬁerce competition and their products and services may be subject to rapid obsolescence. Investing in the energy sector involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors.

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