The Dow (-0.1%), NASDAQ (-0.5%), and S&P 500 (-0.5%)were all down fractionally last week, as they extended their losing streak for every week of September. Fortunately, the aggregate of those losing streaks is “only” about 2%, as September has historically been the worst month of the year for the stock markets. Still two more weeks to endure, and then earnings season often turns that around. Meanwhile, taxable bonds and tax-free municipal bonds were relatively flat for the week.
The most notable economic news last week was the Consumer Price Index (CPI), which is the most regarded measure of inflation. The CPI rose by 5.3% compared to August of last year, which is considered to be a high rate of inflation. I think that most of us are aware of the high inflation we have been experiencing, so this shouldn’t be too surprising. However, the silver lining is that the 5.3% reading for August was less than the prior month of July and substantially less than June. That data suggests that inflation may be slowing down, which would be welcomed by nearly all of us.
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.