From the desk of Vance Howard:
The HCM-BuyLine® is positive, and any pullback should be bought. Covid has put some pressure on the market, along with the markets being a bit overbought. The VIX index, which is a measure of volatility, has been very tame even with some of the selling we have seen the last few days which leads us to believe a rally is building up steam and is imminent. Interest rates have been organically moving up which is putting pressure on bond prices. Bond investors will probably start to look for alternatives such as high-dividend paying stocks as bond prices continue to slide.
The Empire Manufacturing General Business Conditions Index dropped 24.7 points in August to 18.3, well below the consensus of 29.0. It was the third decline in the past four months and the most since the lockdown in April 2020, as factory activity growth in the region moderated significantly.
New order growth eased, while shipments nearly stalled. Both payrolls and hours worked grew at slower rates. Firms continued to face supply side challenges, as deliveries slowed and backlogs accumulated at a quicker pace versus the previous month. Input price pressures eased modestly, while selling prices rose at a new record rate, a sign of sellers’ pricing power and strong ability to pass higher costs onto clients.
The Expectations Index rebounded 7.0 points to 46.5, its second-highest level in 14 months, as manufacturers remained optimistic about the near-term growth outlook. They expect a rebound in shipments and new orders and normalization in supplier deliveries and backlogs. Nevertheless, the outlook for price pressures remained elevated.
Copyright © 2021, All rights reserved.
Our mailing address is:
Howard Capital Management Inc.
1145 Hembree Rd
Roswell, GA 30076
This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Howard Capital Management, Inc. (“HCM”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from HCM. Please remember to contact your primary investment professional, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising HCM’s investment management services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment management services. HCM is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the HCM’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.
© 2021 Howard Capital Management, Inc. All rights reserved. Intended for receipt only and not for further distribution without the consent of Howard Capital Management, Inc.
McCarthy Financial Group's Blog: Market Insights & Wealth Watch