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.

Did You Know?

  1. 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.
  2. 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

In the Markets

  • 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.


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

Capital Markets Update and Outlook: January 2023

Although the one-two punch of rising interest rates and inflationary pressure set the global capital markets on shaky footing through much of 2022, the U.S. economy kept motoring ahead. How are financial conditions shaping up in the new year?

Maximize Tax Benefits with a Qualified Charitable Distribution

The qualified charitable distribution has become popular with some IRA holders as a way of donating to charities while saving money on taxes.
Investment Term of the Week

Thought of the Week

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Making Life a Richer Experience