Independent Investment Advisors

Independent, Fiduciary & Fee-Only Advisor

You are here: Home / Portfolio & Market Reviews / The Financial Quarterly Q3 2021

The Financial Quarterly Q3 2021

· ·

< back to Market Insights Blog

The Financial Quarterly

The Financial Quarterly

3rd Quarter 2021

Goran Ognjenovic
https://independentadvisorsnw.com
Independent Investment Advisors
(971) 350-8068

Despite breaking multiple records, a rocky third quarter ended with a thud as concerns about inflation, political brawls, and viral variants weighed.1

Let's take a look at how markets performed and what we might look forward to in the months to come.

Looking Back

How Did Markets Perform Last Quarter?

S&P 500

The broader U.S. market ended Q3 flat.2

NASDAQ

The tech-focused NASDAQ was rocked by volatility, but closed Q3 only slightly down.2

DOW 30

Blue chip stocks also fell victim to fears of higher interest rates ahead, ending Q3 negative.2

Looking Ahead

What Can We Expect 3-9 Months Ahead?3

U.S. Economic Outlook

Negative Positive

The U.S. economy continues to recover though the delta variant may weigh on near-term growth.4

Equity Outlook

Negative Positive

Though equities could still have room to grow in the months ahead, a correction would not be surprising.5

Consumer Sentiment

Negative Positive

Consumer sentiment remains positive, but concerns about a slowing recovery could weigh.6

Labor Market

Negative Positive

The labor market continues to grow, though challenges matching open jobs with available workers remain.4

Business Outlook Survey

Negative Positive

The overall business outlook looks positive heading into the close of the year, though supply chain woes may continue.4

Fiscal Policy

Negative Positive

Though prospective government policies look to support near-term economic growth, some have concerns about long-term debt.4

"As we head toward the finish line, we see some clouds on the horizon; however, we still hope for a solid end to the year."

Bottom Line

Key Takeaways for Savvy Investors

2021 opened with great optimism and hope that vaccines would put the pandemic in the rearview mirror.

The year so far had a lot of highlights: the U.S. economy roared back from its 2020 recession, personal incomes hit a high mark, home values increased, and U.S. companies enjoyed record profitability.7,8,9,10

All that optimism has led to record-breaking stock performance (50+ all-time-highs in 2021), causing the S&P 500 to double in less than a year.11,12

But, the clouds on the horizon could lead to more choppy seas. Maybe even a storm.

There are a few things I’m watching as we head toward the close of 2021:

  • New COVID-19 variants
  • Higher inflation
  • Fed tapering
  • Political and geopolitical concerns
  • Economic growth
  • The rising debt burden

Since markets are cyclical, the good times are bound to end, and now is a good time to be cautious.

The flipside is that rocky times don’t last forever either.

Bottom line, I'm keeping a close eye on conditions and staying flexible.

Questions about what’s going on? Please reach out. I'd be happy to chat.

Goran Ognjenovic
Independent Investment Advisors
(971) 350-8068
info@independentadvisorsnw.com