Monthly Performance November 2021
October experienced a spectacular rebound from the September Effect drawdown, with the S&P 500 gaining 7.0% along with long-dated Treasuries returning 1.8%. This momentum was aided by President Biden’s massive stimulus expected from the Infrastructure Bill, above consensus corporate earnings, and the market’s expectation of a softer landing in rate tightening. Equity market gains were concentrated on growth and momentum factors not commonly dominant during extended secular economic recoveries.
Investors Unfazed by INFLATION
Inflation soaring to the highest level since 1982 did not scare investors away from equities as markets closed the week higher. Consumer inflation climbed in November to almost a four-decade high. Technology shares led the rally as financials and utilities lagged for the week. Concerns over the potential impact of the Omicron variant of COVID-19 on the economic recovery eased, which helped equities higher.
Market Reacts to Omicron
Omicron, the newest COVID variant, caused a selloff in the equity markets last week as investors weighed the possibility of new lockdown measures. More cases of the new variant were discovered in the United States, which helped trigger angst in the markets. Investors were also reacting to Fed Chair Jerome Powell, who mentioned that rates could rise sooner than previously thought.
Media Kit – Sowell Management
About Sowell Management Recognized as a pioneer in the fee-only financial planning practice, Bill Sowell formed Sowell Management in 2001 to offer asset management, transition strategy and support, and customized practice management solutions to Independent Advisor Representatives (IARs) and RIAs. The only RIA based in Arkansas, Sowell Management has offices, RIA affiliates and advisors in […]
Media Kit – Erin Taylor, Managing Director, Marketing and Communications
Originally from New York, Erin came to Arkansas to run cross-country and track competitively at the University of Arkansas and fell in love with marketing along the way. After more than 30 years, Erin would consider herself a true seasoned marketer, beginning her career as a copywriter and eventually growing her own agency. In 2000, […]
Media Kit – Daryl Seaton, COO to Chief Operating Officer
A native of Northern California, Daryl began his career in financial services in 2000 with a Fortune 100 company in Sacramento, Calif. Swiftly becoming a top producer, he was promoted and in due course held responsibilities for recruiting, developing, and leading 150-plus agents/financial advisors with more than $1 billion in assets under care. Pursuing autonomy […]
South African Variant Sell-Off
The coronavirus reminded us again that the pandemic is far from over. Last Monday, Austrian residents started their day in lockdown. Later in the week, the new Covid-19 variant from South Africa set off alarm bells worldwide. Europe first, and then the U.S. announced travel bans on South Africa and surrounding countries. This setback in the fight against the virus caused investors to sell equities globally and buy the safety of Treasuries.
Media Kit – Bill Sowell, Chief Executive Officer/President
Bill began his career in the financial services industry in 1990 and quickly became a top producer within the industry. In 1995, he began a fee-only practice now known as Sowell Management, which services a broad spectrum of some of the top Independent Advisor Representatives (IARs), and Registered Investment Advisors (RIAs) in the United States. […]
The Next Industrial Revolution?
With Washington’s political attention over President Biden’s recent economic and social stimulus bills and the global debate over greenhouse gases, beneath the surface could electric vehicles be laying the groundswell for another industrial revolution? Tesla’s market-cap now at $1.1 trillion exceeds Toyota, Volkswagen, Daimler, GM, and Ford’s combined. New EV entrants Rivian, recent IPO ($100 bn) and Lucid Motors ($90 bn) combined market-cap already exceed Ford and GM.
Monthly Performance October 2021
October experienced a spectacular rebound from the September Effect drawdown, with the S&P 500 gaining 7.0% along with long-dated Treasuries returning 1.8%. This momentum was aided by President Biden’s massive stimulus expected from the Infrastructure Bill, above consensus corporate earnings, and the market’s expectation of a softer landing in rate tightening. Equity market gains were concentrated on growth and momentum factors not commonly dominant during extended secular economic recoveries.