The underlying fundamentals of the US economy still look solid. Market Update 11/28
Channel: Payne Capital
Date: 2021-11-28

This is Ryan Payne filling in for Bob with this week's Market Update. Stocks, oil, cryptocurrencies, bond yields, markets dropped precipitously on Friday in light of the renewed Covid fears over a new variant found in South Africa. Scientists fear this new variant could have increased resistance to vaccines as investors fret over the impact a new strain of the virus could have on the global economy. Will we see more lockdowns and restrictions hindering the pace of economic activity around the world? Not surprisingly travel-related stocks were hit hard on Friday as shares of Carnival Corp, Royal Caribbean, United Airlines, Delta Airlines, and American Airlines plummeted. However, it's important to stress that very little is known at this point about this new variant and Friday's selling was on a very illiquid and shortened trading day as many traders and investors were working off their Thanksgiving feasts.

Meanwhile, yesterday was also the unofficial kickoff of the holiday shopping season as Black Friday is a great reminder that Americans love to spend and the US consumer looks very healthy going into this year's holiday season. As retail executives have spoken in recent weeks about how they are successfully managing supply chain issues and inflation.

In other news Jerome Powell was re-nominated for a second term as federal reserve chairman creating more certainty around monetary policy and as we know markets love certainty. So despite Friday's sell-off the underlying fundamentals of the US economy still look solid as we move into the final weeks of the year. A period typically strong for markets with the so-called Santa Claus rally usually creating a happy holiday for Wall Street. 

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