Domestic and International equity markets had a volatile week as traders digested mixed economic news and U.S. Fed officials entered a speaking black out period leading up to the FOMC meeting next week.
Peter Thiel, a PayPal co-founder, invested approximately $2,000 worth of PayPal shares in a Roth IRA during the late 1990’s. Today, those shares are worth an estimated $5 billion, and Thiel won’t owe taxes on any of the gain if he waits until the age of 59 ½ to withdraw money from that account.
Fears that growth has peaked weighed heavily on global equity indices for the second week of the month. Japanese equities were the lone bright spot, with the Nikkei up +4.30% for the week.
Domestic equities posted another week of gains but lost some momentum after a disappointing payroll release. European equities faltered on political news out of Germany, while Japanese equities rallied around their own political news.
Quick Takes ● Steady ascent. Despite higher COVID cases, rising geopolitical risks, mounting inflation fears, the looming Fed tapering, and waning economic growth, stocks continued their steady ascent with the S&P 500 closing August just below its all-time high. ●...
The S&P and Nasdaq rose to record levels after Fed Chairman Powell’s comments post Jackson Hole Symposium. Small Cap equities were the biggest winner for the week, gaining +5.05% as investors went risk on.
There is a current euphoria taking place in the public markets, but if you look forward it seems as though we are borrowing from future returns.
Markets threw a mini tantrum this week as speculation over tapering to the Fed’s asset purchase programs abounded. All major US and International indices finished the week in the red, Emerging Market equities took the brunt of the sell-off.
U.S. Consumer Sentiment fell to its lowest level in 11 years, dragging the NASDAQ and Russell into a negative week. The S&P and Foreign equities were able to post a positive week.
Equities returned to their winning ways after last week’s fall. All major global equity indices posted gains for the week, are now positive for the year–most with double‐digit advances, and are at or near all‐time highs.