MARKETS AND INVESTING
August 27, 2021
Review the latest Weekly Headings by CIO Larry Adam.
As Labor Day, the unofficial end to summer, draws near, investors have either returned from or are taking the last of their vacations. Meanwhile, the equity market has done some traveling of its own, soaring to new record highs and rallying over 6% since Memorial Day—far outpacing the 1.3% average return seen over the Memorial Day to Labor Day time period since 2000. And to no one’s dismay, the index has avoided the summer slump historically seen during these hotter months. In fact, the S&P 500 has avoided a 5%+ pullback for ten months! This performance has dispelled another market myth that investors should ‘Sell In May And Go Away.’ Despite this healthy performance, we remain optimistic the upward ascent will continue. But the truth is that this may be a ‘September to Remember’ as it is packed with economic and political events that may lead to increased volatility.
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All expressions of opinion reflect the judgment of Raymond James & Associates, Inc., and are subject to change. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. There is no assurance any of the trends mentioned will continue or that any of the forecasts mentioned will occur. Economic and market conditions are subject to change. Investing involves risk including the possible loss of capital. International investing involves additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets. Companies engaged in business related to a specific sector are subject to fierce competition and their products and services may be subject to rapid obsolescence. Past performance may not be indicative of future results.