Just like that, it’s back-to-school season. Tell me, where did the summer go?
As kids of all ages go back to school, with all of the apprehension and excitement that may bring in these turbulent times, it’s also a great reminder that in life, summer ends but the learning never does. We are always presented with challenges and opportunities to expand our knowledge and grow.
It appears, though, that Americans are slipping in that regard. According to recent Forbes survey, the U.S. is experiencing a steep decline in financial literacy in recent years – especially when dealing with more complex topics like inflation, financial risk, and mortgage rates.
How is your financial IQ? Are there some topics you could use some brushing up on?
The easiest way to fix any gap in knowledge is to ask a question. I can be a great resource for you, and we can discuss how your strategy is positioned to face these complex times. The market brief below gives current insight as well. Feel free to connect with me and keep the financial literacy conversation going to ensure your circle has the same potential for wealth and wellness.
U.S. equities posted mixed results as volatility plummeted towards the lowest levels of the year. The Dow and S&P 500 indexes managed modest gains to once again close at record highs, while the Nasdaq Composite fell slightly. Fed officials commented that while the labor market still has room for improvement, inflation is already at levels that would justify interest rate hikes. U.S. job openings surged in June to a record 10.1 million, but businesses are still struggling to find qualified labor for the rebounding economy. Jobless claims fell to 375,000 and continuing claims dropped to a pandemic-era low of 2.8 million.
U.S. productivity grew less than expected at 2.3% for Q2, igniting stagflation fears. Sentiment numbers also disappointed, as small business optimism reversed in July to 99.7 from 102.5. The University of Michigan Consumer Sentiment also fell to 70.2 in early August, a 10-year low. Americans are more concerned about the economy, inflation, and the delta variant. Crude oil gained as the Biden administration pressured OPEC to increase output. For the week, the Dow finished up 0.94%, S&P up 0.75%, and Nasdaq down 0.07%.
Despite concerns about sentiment, market breadth, and seasonal weakness, stocks continue to climb the wall of worry. Many pundits are calling for a correction, but there seems to be lack of a legitimate catalyst to create that scenario. This week the economic calendar is rather light. Given recent economic data and a policy committee that is growing impatient on tapering, Fed Chair Powell’s town hall event today will be scrutinized along with the July FOMC meeting minutes on Wednesday.
The July U.S. Retail Sales report this morning showed a contraction based on slumping services spending. Where is all the school spending? Regional manufacturing updates came with the Empire State Index declining on Monday followed by the Philly Fed Index on Thursday. The U.S. calendar rounds out with industrial production numbers today and housing starts on Wednesday. Year-to-date index performance; Dow up 16.04%, S&P up 18.96%, and Nasdaq up 15.01% through the close on Friday.
Happy back-to-school week!
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