A seven-figure increase in new jobs created and continued progress on the COVID front drove the market to all-time highs this week. Concerns about higher future inflation and interest rates have been subdued, as investors continue to rush into the equity markets. However, with valuations and sentiment skyrocketing, it is very important to continue to stay the course with investment strategy.
Jobs Report – The most recent jobs data report indicated over one million jobs created in March with the January/February revisions. Perhaps the most encouraging part of that news was that virus-sensitive job gains were only half of the total, suggesting that America is recovering broadly across many industries. While 10 million more jobs are needed to get back to pre-COVID numbers, April to July job gains should be even stronger.
COVID Data – Part of the reason for the optimism regarding continued job growth is the continued positive COVID data, which strengthens the case for a quicker and more efficient reopening. The most recent reported daily vaccine rate is over three million, which puts the U.S. on pace to achieve a 75% vaccination rate in less than three months. Additionally, Monday’s total of only 222 COVID-related deaths is the lowest number since March 23, 2020.
Record Highs – Both the Dow Jones Industrial Average and the S&P 500 hit all-time highs this week, on the strength of gains in “reopening” stocks (airlines and cruise operators) and many technology companies. Investor sentiment is very bullish, with individual investors surveyed currently allocating almost 70% of their portfolios to stocks, the highest percentage in several years.
Source: @sentimentrader
IMPORTANT DISCLOSURES
Investment advice offered through Strauss Financial Group, Inc., a Registered Investment Advisor.
These materials, opinions, analyses and information are provided for general informational purposes only based upon sources believed to be reliable and in good faith—but are not considered all-inclusive, and no representation or warranty of any kind, expressed or implied, is made concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no obligation to update such opinions, analysis or information, and no warranty or guarantee is made. The information in these materials may change at any time and without notice. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Please consult your attorney and/or accountant regarding legal and tax issues. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
Prices, quotes, rates and yields are subject to change without notice. Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.
Investment advice offered through Strauss Financial Group, Inc., a Registered Investment Advisor.
Data sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates).
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indices listed are unmanaged and are not available for direct investment.