Transcript:
Tom Vaughan:
Hello everybody, welcome to Wednesday. The S&P 500 was up .65% today. Thirteenth month in a row that we’ve had a record close like we had today in the S&P 500. And that’s fantastic. And again, you know, for those of us who kind of kept a positive outlook throughout this pandemic, for what could be happening in the stock market, we’ve benefited quite nicely from that a lot better than those that didn’t. And I would keep encouraging you to kind of keep that thought process. Because what happened today was that the Federal Reserve had their meeting, Chairman Powell came out and talked about how they’re going to cut back on the purchase of bonds. That was actually amazingly well received by the market. It was basically going sideways, and it went straight up thereafter as he was speaking. And he talked a lot about how much impact that Delta Variant has been having, especially on the labor market. Talked about how people with children were afraid to put their kids into daycare, or couldn’t find daycare, certainly affordable daycare.
So as the Delta Variant continues to mitigate and drop, there’s some hope that there’ll be higher numbers of employment, coming out of the household basically, and coming back to work, which is a pretty big piece of what needs to happen for things to grow. They are expecting that an inflationary pressure that’s happening here, will mitigate itself quite nicely, throughout next year, especially throughout the first half of next year. They’re going to be theoretically done with their bond buying by mid June. Maybe they raise rates a few times, in 2022. Keep in mind that during this low interest rate period, this is a great time for stocks. The two big downturns that we had in 2000 and 2008, we had 19 rate increases and 21 rate increases in both those cases, we haven’t had one yet.So continue to feel positive about that aspect, and it will probably help you deal with kind of the negative news that’s always coming at us, you know, high inflation or supply chain issues, or all those types of things.
Companies are really good at figuring out how to deal with that. If you tell a company, we’ve got a lot of product demand for your product, but you’ve got to come through these hoops, these S&P 500 companies have definitely been able to jump over those hoops and deal with the supply chain, the inflation, the labor, all of those things. You know, earnings were up 36.6% year over year for the third quarter so far, that’s a fantastic number.So things are very, very positive. The market just continues to march forward here. This is what I would call kind of a “melt up.” You know, oftentimes the fear is the biggest emotion and you see these big downturns that happen. Right now, it seems like people are just afraid of missing out and they’re jumping in and we’ve seen more and more motion to the upside. This is a really, really powerful market right now. So it’s it’s good thing. And you know, watch for what might happen and what have you but very, very pleased with what’s going on here. So look forward to being able to talk to you tomorrow. Thank you.