Hi John Schooler here, September starting off on a solid footing for the market. Interest rates remain extremely low and there is lots of liquidity in the economy. August continued the winning streak for the market and for the seventh month in a row the S&P closed higher. The markets have had a historic run since the pandemic low of last year. Septembers can be difficult months, however typically if the market has been strong in the first half of the year, Septembers tend to be good months.
Certainly, the market will be focused on the feds monetary meeting towards the end of the month. It's likely that they will clarify the timeline for tapering their bond purchases. I do expect some volatility with the feds decisions. I hope they taper bond purchases and allow longer-term rates to climb. The economy is pretty strong and I'd seen expected GDP growth numbers for the third quarter at 6.9%. That's astonishing given the pandemic. Forecasts further out do have the economy slowing some, however still strong enough to outpace some tapering.
We may also have some volatility this fall around tax talk and the legislative calendar. However, I expect the market to continue to march higher through these events. There's an old adage "the market will climb a wall of worry."
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