MWM Weekly Update

The Week of July 26, 2021

MWM Weekly Update

The Week of July 26, 2021

“Neighbors are given to us on the same basis as we are given our families.
There is no element of choice involved – none at all.”

- Alexander McCall Smith, The World According to Bertie

Greetings Everyone,

No matter where you live you probably have some wonderful neighbors who are very special people. You wave hello, smile, and might even know their dog’s name.  You can ask to borrow coffee when you’re out and can text them if you need someone to check on your house.  You might also have one or two neighbors who are annoying or lack good manners.

Bad-neighbor experiences are so relatable that almost everyone has something they can share. Some of the most common complaints are noisy neighbors – music, barking dogs and loud parties during sleeping hours. Some of the worst problems come from having a neighbor who doesn’t care for their house.  A home that is in disrepair and a yard that is overgrown and full of junk can seriously mess up the value of your home.

The advice for these situations comes from Trulia’s Neighbor Survey. They showed that one in two Americans don’t know their neighbors’ names. They encourage people to build a friendly rapport as it can go a long way toward solving problems before they start.

Communicate politely whether you’re the one who is complaining or the recipient. If you are planning a party, let your neighbors know and maybe invite them. Offer them your phone number in case of any problems.

If there are problems that escalate, always document them as soon as an issue starts.  Take notes with dates, times, photos, and any updates or retaliation. It may help if you need to seek outside help.

My neighbor Dave just sent me a text asking about a family member’s health.  The text warms my heart because I know that Dave and his wife really care.  A neighbor like Dave is a treasure.

Did You Know . . .
That a bear has 42 teeth
That rabbits like licorice
That a giraffe can clean its ears with its 21-inch tongue

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

In the Markets

  • Last week proved to be a choppy one for stocks. The week began with stocks trending lower on news of a spike in the number of coronavirus cases. However, strong corporate earnings reports helped support the perception that the economy is continuing to advance, despite the cloud of the Delta variant hanging overhead. By last Friday, both the Nasdaq and the S&P 500 reached record highs, with megacap tech stocks helping drive the indexes upward. The Nasdaq gained 2.8% to lead the major benchmark indexes, followed by the Russell 2000, the S&P 500, the Dow, and the Global Dow. Yields on 10-year Treasuries dipped 2.0 basis points lower, while the dollar and crude oil prices each ended the week higher. Gold prices, which had been climbing, took a slight step back, falling about 0.5%.
  • Stocks slumped last Monday to begin last week as a spike in coronavirus cases, both domestically and abroad, put a damper on the economic recovery. Investors shied away from stocks and moved toward bonds, driving prices higher and yields lower. Each of the market sectors fell, led by financials, industrials, and materials. The S&P 500 dropped the most in two months, the Dow had its largest decline since October, while the small caps of the Russell 2000 continued to sink, falling nearly 10% since peaking in March. The CBOE Volatility Index, which had been relatively steady for several sessions, soared nearly 22.0%. Crude oil prices fell 7.4% to $66.51 per barrel — the first time prices fell below $70.00 per barrel since early June, after major oil-producing countries agreed to boost supply into 2022.
  • Wall Street closed higher last Tuesday, rebounding from a multi-session losing streak. Several strong corporate earnings reports helped renew investor optimism, at least temporarily, in a reviving economy. Each of the benchmark indexes posted solid gains, led by the Russell 2000 (3.0%), which enjoyed its first positive session since July 12. The Dow and the Nasdaq each gained 1.6%, followed by the S&P 500, which advanced 1.5%, and the Global Dow, which gained 1.0%. Industrials, financials, and real estate headed the sectors, with only consumer staples dipping modestly. The yield on 10-year Treasuries reversed course from last Monday, climbing to 1.20%. The dollar and crude oil prices also advanced by the close of trading.
  • Stocks advanced for the second straight day last Wednesday. Robust corporate earnings reports helped fuel renewed optimism in the economy, despite increasing coronavirus cases and inflation. The Russell 2000 again led the indexes, climbing 1.7%, followed by the Global Dow (1.5%) and the Nasdaq (0.9%). Both the Dow and the S&P 500 gained 0.8%. Energy shares advanced 3.5%, and financials increased 1.7%. Crude oil prices climbed back above $70.00 per barrel. The dollar dipped, while the yield on 10-year Treasuries jumped 7.1 basis points to 1.28%.
  • Equities closed last Thursday mostly higher, with only the Russell 2000 losing ground among the benchmark indexes. Technology led the market sectors, with health care, consumer discretionary, and communication services also advancing. Energy and financials both fell more than 1.0%. Treasury yields dipped lower, while the dollar and crude oil prices rose higher.
  • Another round of robust corporate profits helped push stocks to record highs last Friday. Surging earnings are reflecting an ongoing rise in economic activity, possibly allaying fears that stocks are overvalued. The Nasdaq and the S&P 500 each gained 1.0%, while the Dow (0.7%), the Russell 2000 (0.5%), and the Global Dow (0.4%) also finished the day ahead. Yields on 10-year Treasuries, the dollar, and crude oil prices advanced. Communication services led the sectors, increasing 2.7%.

There's plenty of important market-moving economic information available this week, starting with the latest meeting of the Federal Open Market Committee. The FOMC has maintained the federal funds interest rate and bond purchasing program for several months. However, inflation has been trending higher in conjunction with an improving economy. At some point, the Committee with begin to scale back the quantitative easing measures currently in place, which will likely have a direct impact on the market. Also, the second estimate of gross domestic product for the second quarter is available this week. The initial estimate showed that the economy expanded at an annualized rate of 6.4% in the second quarter.

Source: Broadridge Investor Communication Solutions, Inc.

Articles & Education

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Investment Term of the Week

Thought of the Week

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