After seven consecutive months of stock market gains, stocks finally corrected in September with key market indices down anywhere from -4.29% to -5.31%*. Yet, the flagship S&P 500 index was still up +14.67%* at third quarter’s end, with October starting strongly on the upside and approaching new
highs by mid-month.

Worries about inflation have been uppermost in investors’ minds, as explosive pent-up demand outstrips available supply in many areas, wreaking havoc on global supply chains. Production and logistics costs are rising, as are wages given labor shortages’ impact on businesses large and small.
Though likely transient, given the extraordinary one-time nature of the current imbalance in supply and demand, inflation looks to be higher for longer than initial expectations, an adjustment in outlook that spooked the markets (and likely will again).

While the Federal Reserve remains committed to keeping interest rates low, rates could back up a bit more given higher inflation in the near-term. But in absolute terms, rates should stay low for a long time to come, which are the key underpinning to the economic recovery, earnings and hence the stock
market.

Record-breaking amounts of fiscal and monetary stimulus to counteract the economic shutdown of last year have left consumers flush with cash, as evidenced by the housing boom, continued strong retail and car sales, and more.

As more and more workers come back to work – unemployment was down to 5.2%** in August – the economic recovery should continue apace, with company earnings continuing to grow, pushing stock prices higher, though not without frights along the way.

The emergence of the Delta Covid variant this past summer, the threat of more Covid-related disruptions this winter, the impact on consumer spending of higher oil prices, now up 60%+ year-to-date***, continued supply chain disruptions, and the possibility of higher more prolonged inflation/interest rates will upset the market from time to time (not to mention geopolitical concerns, e.g., China and Taiwan), but are not, in our view, likely to derail the economic recovery.

At BD8 Capital Partners, we focus on your financial planning and investment needs, and have an audited track record of client performance to back up our unwavering commitment to your financial health and well-being.

If you would like to discuss your financial planning needs, the effectiveness of your portfolios and whether you are well positioned for what lies ahead, please feel free to contact us.

We hope this letter finds you healthy and safe.
With warmest regards,
Barb
Barbara Doran
CEO CIO
bdoran@bd8cap.com
linkedin.com/in/barbara-doran-7aa248
https://twitter.com/barbara_doran1__
BD8 Capital Partners LLC
Cell: 917-733-7644
Fax: 917-580-6882

Nolen Howe (Client Service Associate)
nhowe@bd8cap.com
Office: 332-220-3922

*Bloomberg Markets
**US Bureau of Labor Statistics
***US EIA

The content of this article is for informational purposes only and should not be considered a recommendation of any particular security, strategy, investment product or investing advice of any kind. There are risks associated with investing, including the entire loss of principal invested. Past performance does not guarantee future results. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions of Spire Wealth Management, LLC, Spire Securities, LLC or its affiliates. Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company, Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.

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