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MONTHLY MARKET INSIGHTS | DECEMBER 2021


U.S. MARKETS

Reports of a new COVID-19 variant in late November roiled markets as a wave of
selling erased the month’s earlier gains.

The Dow Jones Industrial Average took the hardest hit, dropping 3.73 percent.
The Standard & Poor’s 500 Index fell 0.83 percent while the Nasdaq Composite
managed a small gain of 0.25 percent.1

Create the highest, grandest vision possible for your life, because you become
what you believe.

Oprah Winfrey, media executive, actress, and philanthropist


THANKSGIVING SURPRISE

The markets were blindsided by news over Thanksgiving Day of the emergence of a
new strain of COVID-19, which led to travel bans by multiple countries and
renewed unease about the prospect of a return to economic and social
restrictions.

The potential global spread of this new COVID-19 variant Omicron triggered fears
of another round of economic deceleration, sending investors back to their
pandemic playbook of selling travel and leisure, financials, energy, and
cyclicals and buying pharmaceutical companies and stay-at-home stocks.


VOLATILE TRADING

The sharp drop on Friday, November 26, was exacerbated by reduced liquidity in
the markets due to many traders being absent on this normally quiet
post-holiday, shortened trading session. Stocks rebounded as traders returned to
work on the following Monday but were unable to hold their gains on the month’s
final trading day.


UPBEAT COMPANY REPORTS

The month had started off on a strong note, helped by a string of positive
corporate earnings surprises, optimistic forward guidance from companies, and
solid economic data. Investors were particularly encouraged by the fact that
businesses had navigated the challenges of a surge in Delta variant infections
in the third quarter, rising inflation, and supply chain bottlenecks.


FED HEADLINES

Developments in Federal Reserve policy dominated much investor attention
throughout the course of November. The first of these was the Fed announcement
that it would begin its bond tapering program. Markets were unfazed by this news
as they had long anticipated that the Fed would soon commence paring back its
monthly bond purchases.

The second was the uncertainty surrounding whether Jerome Powell would be
renominated to serve another four years as Fed chair. When President Biden
finally announced his decision to renominate Powell, bond yields rose as
investors became more certain that the Fed’s monetary normalization policy would
proceed as planned.


OMICRON UNCERTAINTY

The consensus narrative of healthy economic expansion in 2022 was left a bit
dented by the introduction of the Omicron variant. Many questions surround the
new variant and its impact on global economies. Markets don’t always respond
efficiently within an information void, creating the potential for further
volatility until more is known about Omicron.


SECTOR SCORECARD

Industry sector performance was mixed in November. Gains were posted in Consumer
Discretionary (+3.03 percent), Consumer Staples (+1.25 percent), Materials
(+1.97 percent), Real Estate (+1.21 percent), Technology (+5.33 percent), and
Utilities (+1.26 percent). Losses were experienced in Communications Services
(-3.06 percent), Energy (-2.73 percent), Financials (-3.40 percent), Health Care
(-1.11 percent), and Industrials (-1.05 percent).2

U.S. Market Recap for November 2021

S&P 500 -0.83 Month (%) ‌ 21.59 Year-to-Date (%)

Nasdaq 0.25 Month (%) ‌ 20.56 Year-to-Date (%)

Russell 1000 -1.47 Month (%) ‌ 20.03 Year-to-Date (%)

10-Year Treasury 1.44 Month (%) ‌ 0.52 Year-to-Date (%)

Yahoo Finance, November 30, 2021. The market indexes discussed are unmanaged and
generally considered representative of their respective markets. Individuals
cannot directly invest in unmanaged indexes. Past performance does not guarantee
future results. U.S. Treasury Notes are guaranteed by the federal government as
to the timely payment of principal and interest. However, if you sell a Treasury
Note prior to maturity, it may be worth more or less than the original price
paid.


WHAT INVESTORS MAY BE TALKING ABOUT IN DECEMBER

In the coming weeks, markets will be sorting out news from Washington, updates
on COVID variant Omicron, and economic reports.

On the economic front, investors are expected to keep a close eye on retail
sales for the month of November, which are scheduled for release December 15.
The November report will include the post-Thanksgiving start to the holiday
shopping season and potentially be an advanced read on whether the supply chain
bottlenecks might hamper holiday sales.3

Another anticipated report will be the Consumer Price Index, which will give an
update on inflation trends. It’s due on December 10. If inflation continues to
run hot, it may test investor confidence.4


WORLD MARKETS

A resurgence of Delta variant infections, spreading economic and social
restrictions, and the emergence of a new COVID-19 variant sent international
stocks broadly lower, with the MSCI-EAFE Index falling 3.79 percent in
November.5

Major European markets dropped, with losses in Germany (-3.75 percent), the U.K.
(-2.46 percent), and France (-1.60 percent).6

Pacific Rim markets also were under pressure. Hong Kong lost 7.49 percent, Japan
tumbled 3.71 percent, and Australia slipped 0.92 percent.7

World Market Recap for November 2021 Emerging Markets November (%) Year-to-Date
(%) Hang Seng (China) -7.49 -13.79 KOSPI (Korea) -4.43 -1.20 Nikkei (Japan)
-3.71 1.38 Sensex (India) -3.78 19.50 Jakarta Composite (Indonesia) -0.87 9.28
Bovespa (Brazil) -1.69 -14.71 IPC All-Share (Mexico) -3.14 12.78 MERVAL
(Argentina) -5.08 54.83 ASX 200 (Australia) -0.92 10.15 Europe     DAX (Germany)
-3.75 10.07 CAC 40 (France) -1.60 21.07 Dow Jones Russia Index (Russia) -10.74
18.62 FTSE 100 (United Kingdom) -2.46 9.27 Yahoo Finance, November 30, 2021. The
market indexes discussed are unmanaged and generally considered representative
of their respective markets. Individuals cannot directly invest in unmanaged
indexes. Past performance does not guarantee future results. International
investments carry additional risks, which include differences in financial
reporting standards, currency exchange rates, political risks unique to a
specific country, foreign taxes and regulations, and the potential for illiquid
markets. These factors may result in greater share price volatility.


INDICATORS


GROSS DOMESTIC PRODUCT (GDP)

Economic growth in the third quarter was revised slightly higher, to 2.1 percent
from 2.0 percent.8


EMPLOYMENT

Job growth rebounded as employers added 531,000 jobs in October. The
unemployment rate fell to 4.6 percent, though the labor participation rate
stayed stubbornly low at 61.6 percent.9


RETAIL SALES

Retail sales rose 1.7 percent, exceeding expectations. This gain was, in part,
attributed to higher costs and the pulling forward of holiday shopping as
consumers worried about low inventory during the holiday season.10


INDUSTRIAL PRODUCTION

Industrial output rose 1.6 percent in October, reversing September’s slide.
About half of the monthly gain was attributed to the recovery from Hurricane
Ida.11


HOUSING

Housing starts slipped 0.7 percent in October, a surprise downturn for market
watchers who had expected an increase.12

Existing home sales rose 0.8 percent, though it was off 5.8 percent from October
2020, which represents a cyclical high.13

New home sales increased 0.4 percent, though they were lower by 23.0 percent
from a year earlier. The median price jumped nearly 18.0 percent year-over-year
to $407,700.14


CONSUMER PRICE INDEX (CPI)

The prices of consumer goods and services increased 0.9 percent in October and
jumped by 6.2 percent year-over-year. This represented the fifth straight month
of over 5 percent annualized inflation and the sharpest year-over-year increase
since 1990.15


DURABLE GOODS ORDERS

Orders for long-lasting goods fell 0.5 percent, the second straight month of
declines. However, excluding transportation, durable goods orders increased by
0.5 percent.16


THE FED

Minutes from the November Federal Open Market Committee (FOMC) meeting showed an
increasing concern over the persistence of inflation with the admission that
inflationary pressures may take longer to abate than previously anticipated.

"The (Fed’s) near-term outlook for inflation was revised up, as consumer food
and energy prices had risen faster than expected and production bottlenecks and
recent wage gains were seen as putting somewhat greater upward pressure on
prices than had been anticipated," according to the minutes released following
the Fed’s two-day meeting that ended November 3.17

Reflecting that concern, several officials suggested that the Fed’s bond
tapering program may have to be accelerated in order to be ready to raise rates
should inflation persist.18


BY THE NUMBERS: CANDY CANES AND PEPPERMINTS


1.2 BILLION19

Number of candy canes produced annually


90%19

Percentage purchased in November and December


5019

Calories in a standard peppermint candy cane


51 FEET LONG19

Size of world record candy cane


900 POUNDS19

Amount of sugar used to make world record candy cane


188220

Earliest recorded use of candy canes hung in trees


CIRCA 190020

First red-and-white-striped candy canes


192120

First machine-made candy cane


72%21

Percentage of people who eat the cane straight end first


FEBRUARY 1922

National Chocolate Mint Day


DECEMBER 322

National Peppermint Latte Day


DECEMBER 26 (WHO KNEW?)19

National Candy Cane Day

--------------------------------------------------------------------------------

 

The 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 Suite,
LLC, is not affiliated with the named representative, broker-dealer, or state-
or SEC-registered investment advisory firm. The opinions expressed and material
provided are for general information and should not be considered a solicitation
for the purchase or sale of any security.

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.

Any companies mentioned are for illustrative purposes only. It should not be
considered a solicitation for the purchase or sale of the securities. Any
investment should be consistent with your objectives, timeframe, and risk
tolerance.

The forecasts or forward-looking statements are based on assumptions, subject to
revision without notice, and may not materialize.

The market indexes discussed are unmanaged and generally considered
representative of their respective markets. Individuals cannot directly invest
in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally
considered representative of large-capitalization companies on the U.S. stock
market. The S&P 500 Composite Index is an unmanaged group of securities
considered to be representative of the stock market in general. The Nasdaq
Composite is an index of the common stocks and similar securities listed on the
Nasdaq stock market and considered a broad indicator of the performance of
stocks of technology and growth companies. The Russell 1000 Index is an index
that measures the performance of the highest-ranking 1,000 stocks in the Russell
3000 Index, which is comprised of 3,000 of the largest U.S. stocks. The MSCI
EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves
as a benchmark for the performance in major international equity markets, as
represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia.
Index performance is not indicative of the past performance of a particular
investment. Past performance does not guarantee future results. Individuals
cannot invest directly in an index. The return and principal value of stock
prices will fluctuate as market conditions change. And shares, when sold, may be
worth more or less than their original cost.

International investments carry additional risks, which include differences in
financial reporting standards, currency exchange rates, political risks unique
to a specific country, foreign taxes and regulations, and the potential for
illiquid markets. These factors may result in greater share price volatility.

The Hang Seng Index is a benchmark index for the blue-chip stocks traded on the
Hong Kong Stock Exchange. The KOSPI is an index of all stocks traded on the
Korean Stock Exchange. The Nikkei 225 is a stock market index for the Tokyo
Stock Exchange. The SENSEX is a stock market index of 30 companies listed on the
Bombay Stock Exchange. The Jakarta Composite Index is an index of all stocks
that are traded on the Indonesia Stock Exchange. The Bovespa Index tracks 50
stocks traded on the Sao Paulo Stock, Mercantile, & Futures Exchange. The IPC
Index measures the companies listed on the Mexican Stock Exchange. The MERVAL
tracks the performance of large companies based in Argentina. The ASX 200 Index
is an index of stocks listed on the Australian Securities Exchange. The DAX is a
market index consisting of the 30 German companies trading on the Frankfurt
Stock Exchange. The CAC 40 is a benchmark for the 40 most significant companies
on the French Stock Market Exchange. The Dow Jones Russia Index measures the
performance of leading Russian Global Depositary Receipts (GDRs) that trade on
the London Stock Exchange. The FTSE 100 Index is an index of the 100 companies
with the highest market capitalization listed on the London Stock Exchange.

Please consult your financial professional for additional information.

Copyright 2021 FMG Suite.

1. WSJ.com, November 30, 2021

2. SectorSpdr.com, November 30, 2021

3. Census.gov, 2021

4. BLS.gov, 2021

5. MSCI.com, November 30, 2021

6. MSCI.com, November 30, 2021

7. MSCI.com, November 30, 2021

8. CNBC. November 24, 2021

9. WSJ.com, November 5, 2021

10. CNBC.com, November 16, 2021

11. MarketWatch.com, November 16, 2021

12. CNBC.com, November 17, 2021

13. CNBC.com, November 22, 2021

14. APNews.com, November 24, 2021

15. WSJ.com, November 10, 2021

16. CNBC.com, November 24, 2021

17. FederalReserve.gov, November 24, 2021

18. WSJ.com, November 24, 2021

19. MentalFloss, December 19, 2016

20. Craves.EverybodyShops.com, December 11, 2017

21. History.com, December 7, 2018

22. Mobile-Cuisine.com, April 29, 2021

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Iron Point Financial Advisors, Inc.

Office: (916) 932-4101 ext 4

Toll-Free: (877) 932-4101 ext 4

Fax: (916) 608-4247

1110 Iron Point Road

Suite 160

Folsom, CA 95630

CA Insurance License #0F68061

nick@ironpointadvisors.com



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The 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. Some of this material was developed and
produced by FMG Suite to provide information on a topic that may be of interest.
FMG Suite is not affiliated with the named representative, broker - dealer,
state - or SEC - registered investment advisory firm. The opinions expressed and
material provided are for general information, and should not be considered a
solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020
the California Consumer Privacy Act (CCPA) suggests the following link as an
extra measure to safeguard your data: Do not sell my personal information.

Copyright 2021 FMG Suite.



Nick A Weber, CFP®, AIF®, CRPS®,  The Investment Fiduciary standard of care
applies to advisory services only. Financial Advisors and Registered
Representatives associated with Iron Point Financial Advisors, Inc. offer
advisory services through Securities America Advisors, Inc. and offer securities
through Securities America, Inc., member FINRA/SIPC.  Iron Point Financial
Advisors, Inc., is not an affiliated entity of the Securities America companies.
 California Insurance License #0F68061

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