• Jonathan Kolmetz

3rd Quarter, 2021

Despite breaking multiple records, a rocky third quarter ended with a thud as concerns about inflation, political brawls, and viral variants weighed.

Let's take a look at how markets performed and what we might look forward to in the months to come.

How Did Markets Perform Last Quarter?

What Can We Expect 3-9 Months Ahead?

"As we head towards the finish line, we see some serious clouds on the horizon; however we still hope for a solid end to the year. The bottom line is until the Federal Reserve fully stops accommodating the economy & stock market, there is little room for a major correction"

Key Takeaways

2021 opened with great optimism and hope that vaccines would put the pandemic in the rearview mirror.

The year so far had a lot of highlights: the U.S. economy roared back from its 2020 recession, personal incomes hit a high mark, home values increased, and U.S. companies enjoyed record profitability.

All that optimism has led to record-breaking stock performance (50+ all-time-highs in 2021), causing the S&P 500 to double in less than a year.

But, the serious clouds on the horizon could lead to more choppy seas. Maybe even a storm.

There are a few things I’m watching as we head toward the close of 2021:
  • Fed tapering

  • Economic growth

  • Higher inflation

  • New COVID-19 variants

  • Political and geopolitical concerns

  • The rising debt burden

Since markets are cyclical, the good times are bound to end, and now is a good time to be cautious. The flipside is that rocky times don’t last forever either.

Bottom line, I'm keeping a close eye on conditions and staying flexible.

Questions about what’s going on? Please reach out. You know I love to chat!


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