Peak growth may be behind us, but markets may continue upward
- We believe the bulk of the restart-fueled earnings surge is behind us, and a moderation of earnings growth into next year is to be expected. The restart can only take place once. Yet companies may well continue to exceed earnings expectations. – BlackRock Investment Institute
- Peak growth is behind us. But we anticipate a reacceleration thanks to several factors. First, consumer spending rotated from goods to services during the quarter, a trend that should help alleviate inflationary pressures. Second, COVID-19 infections appear to have peaked just as boosters are becoming available to a growing percentage of the population — hopefully preventing another surge. These factors, combined with a possible infrastructure package, should allow growth to continue into 2022. – Equities Investment Council, Nuveen
- Supply constraints affected a wide range of goods, contributing to a greater-than-expected surge in inflation. Nevertheless, most economists (including ours) believe that recent inflation readings that have more than doubled the Fed’s 2% target will prove transitory as supply issues are resolved and year-earlier numbers fade out of comparisons. – Asawari Sathe, Vanguard U.S. Economist
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels. Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.