Wild Week of Contagion Concerns
September 27, 2021
Stocks prices were whipsawed last week, dragged initially lower by financial contagion worries and later lifted by a supportive Fed policy statement.
The Dow Jones Industrial Average gained 0.62%, while the Standard & Poor’s 500 advanced 0.51%. The Nasdaq Composite index was flat (+0.02%) for the week. The MSCI EAFE index, which tracks developed overseas stock markets, ticked higher by 0.20%. 1
A Wild Week
Last week began with a sharp sell-off on contagion concerns that the financial difficulties of a large, debt-laden Chinese property developer could spread to other parts of the global financial system. This added to an existing list of worries that included Delta variant infections, slowing economic activity, debt ceiling brinkmanship in Washington, and Fed tapering uncertainty.
By mid-week stocks bounced back strongly on news that downgraded the risk coming from China and a Fed announcement that its bond purchases would continue, though it did anticipate a moderation in such purchases coming soon. When the dust settled, a week that had appeared set for losses ended in small gains.
The Federal Reserve concluded its FOMC (Federal Open Market Committee) meeting last week, announcing that it may start tapering its monthly bond purchases soon, perhaps as early as November, and could raise rates sometime next year. 2
Fed Chair Jerome Powell provided further detail in a subsequent press conference, saying that bond purchases may end entirely by the middle of 2022. The support for hiking interest rates also increased, with half of the 18 Fed officials expecting interest rates to be higher by the close of next year, up from just seven who thought similarly in June. The Fed also cut its GDP growth projection to 5.9%, compared with its June estimate of 7%, while raising its inflation forecast from 3% to 3.7%. 2,3
This Week: Key Economic Data
Monday: Durable Goods Orders.
Tuesday: Consumer Confidence.
Thursday: Jobless Claims. Gross Domestic Product (GDP).
Friday: ISM (Institute for Supply Management) Manufacturing Index.
Source: Econoday, September 24, 2021
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: Micron Technologies, Inc. (MU).
Wednesday: Cintas Corporation (CTAS).
Thursday: McCormick & Company (MKC), CarMax, Inc. (KMX).
Source: Zacks, September 24, 2021
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
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SEVERAL STOCKS TO WATCH AMIDST THE CURRENT MARKET TURMOIL
The HCM-BuyLine® is still positive, and the selloff this week was much needed. The market would have to have a lot more selling to turn the HCM-BuyLine® negative at this level, so pullbacks are buyable. 4
This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice.
Gig Economy Tax Tips
There are some important tips to remember if you work as a gig worker:
- All income from these sources is taxable, regardless of whether you receive information returns. This includes both full-time and part-time work and also if you're paid in cash.
- As a gig worker, it's important that you are correctly classified as an employee or an independent contractor. This can depend on where you live, even for the same services.
- Lastly, it's important to remember to pay the correct amount of taxes on this income throughout the years to avoid owing when you file. Because gig employees don't have an employer withholding taxes from their paychecks, they can either submit a new W-4 and have their employer withhold more from their paycheck (if they have another job as an employee) or make quarterly estimated tax payments throughout the year. 5
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
What Are Essential Oils?
You've likely heard about the many potential benefits of essential oils, but what exactly are essential oils?
Essential oils are compounds extracted from plants. They can be obtained through distillation or cold pressing. The best essential oils are pure and no other chemicals are added. In addition to using essential oils in a diffuser as aromatherapy, you can also apply them topically. Inhaling the aromas from essential oils may stimulate areas of your limbic system, which is a part of your brain that plays a role in emotions, behaviors, sense of smell, and long-term memory. 6
Pumpkin Crème Brulee
Total Time: 3 HRS 5 MINS
- 4 egg yolks (large)
- 1 C. heavy cream, divided
- 3 Tbsp. dark brown sugar (loosely packed)
- 1/8 Tsp. kosher salt
- 1 Tsp. vanilla extract (or the seeds scraped from 1 vanilla bean)
- 1/2 Tsp. ground cinnamon
- 1/4 Tsp. ground ginger
- 1/4 Tsp. ground allspice
- 1/3 C. pure pumpkin puree
- 4 Tsp. granulated sugar (approx.), for caramelized topping
- Preheat the oven to 300 degrees F.
- Place the egg yolks in a small mixing bowl and set aside.
- Place half the cream in a small pot, along with the brown sugar and salt. Bring to a simmer, then stir in the vanilla and spices (off the heat). Allow to steep for a few minutes, then pour in the remaining cream.
- Slowly and gradually add a little of the warm cream into the egg yolks, whisking. When all the cream has been added, and the yolks are warmed, whisk in the pumpkin and transfer the mixture to a spouted vessel. Divide equally between (4) 4-ounce ramekins or canning jars.
- Line a larger baking dish with a towel and place the filled ramekins inside. Carefully pour very hot water around the ramekins, about ⅔ of the way up the sides. Bake for 40-45 minutes, or until the edges are set but the centers are still jiggly.
- Remove from the water bath and refrigerate for 2 hours minimum.
- Sprinkle about a teaspoon of granulated or demerara sugar over the surface of each custard, then brulee with a kitchen torch or under the broiler. 7
Footnotes and Sources
1. The Wall Street Journal, September 24, 2021
2. The Wall Street Journal, September 22, 2021
3. CNBC, September 22, 2021
4. Howardcm.com, September 16, 2021
5. IRS.gov, September 19, 2020
6. Healthline.com, 2020
7. bakingmoment.com, October 3, 2014
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2021 FMG Suite.
McCarthy Financial Group's Blog: Market Insights & Wealth Watch