Markets are never wrong, but opinions often are. -Jesse Livermore
Channel: Payne Capital
Date: 2021-09-11

Bob's Market Update 9/11:

After 8 straight up months, the market started September with muted gains at the end of a very choppy week, but still with the major indices hovering at or near all-time record highs. Market pundits point to an array of factors behind this week's choppiness. They include high historic valuations, the looming prospect that the Federal Reserve may start to taper their bond purchases and unwind some of their fiscal stimulus, the spread of the Delta variant, and the fear of a coronavirus-induced slowdown in the economy. And the fear of rising inflation as producer inflation accelerated in August as wholesale prices rose 8.3% from a year ago. This is the biggest increase on record going back to 2010. Now on top of all that, the investment strategists at the major investment banks are expressing concern over the tone of the market and are all of the opinion that a 10% correction is not only possible but overdue.

Now the market's at new highs because the economic data continues to be positive with big business booming as the most recent earnings season demonstrated. 90% of earnings reports for the S&P 500 beat on all lines, top and bottom. Margins are up, profits are up and dividends are up. Business continues to grow and demand for workers also continues to grow as available jobs hit a new high with 10.9 million jobs available. At the same time, new jobless claims fell this week and reached a fresh pandemic low.

Of course, economic data, no matter how timely, only reflects what is already happened - not what is going to happen. The markets, fortunately, are forward-looking and why investing for most is so counter-intuitive, as markets continue to climb the proverbial wall of worry. So all the investor concerns I listed today, are just that, they're concerns, they're not certainties. Each concern it's just one of the many bricks in the wall of worry. So when in doubt, trust the market. Or in the words of legendary investor Jesse Livermore - markets are never wrong, but opinions often are.
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