Stocks and Bonds cooled their simmering price action Friday, on the 14th anniversary of the day Americans will never forget. September 11, 2001 was a day that brought our nation, and much of the world, together. It forced people to reassess things. It was the day that changed our lives forever. Nearly 3,000 people lost their lives that day. One of them was a friend of mine. I’m certainly not alone. It’s too bad that priorities often only get wake-up calls and reality checks upon tragedies. I suspect that’s human nature. We live in a busy, fast-moving world. Unfortunately, the togetherness formed 14 years ago didn’t last long. Our nation is as divided as ever.
Collaboration and compromise are negative words in Washington. It’s somewhat unbelievable that another government shutdown could occur at month’s end if Congress doesn’t act. Our society has become fixated on short-term solutions and instant gratification. There is very little longterm thinking and planning. This is certainly a challenge for investors, who are constantly looking for longterm opportunities for growth, but are very mindful of the short-term risks and issues we face daily. We Americans are in this together, hoping to enrich the lives of our families, friends and neighbors. Despite all the problems and issues out there, the American way still has no peer. When it comes down to it, that’s everything.
All eyes are on the Fed, with next week’s meeting. A rate hike is probably going to be delayed, but that is far from certain. The US economy is holding on in solid fashion. The same can’t be said overseas. US Gross Domestic Product accelerated last Quarter. The unemployment rate is the lowest it’s been in nearly 20 years. Inflation is still absent, which is one of the barometers the Fed is looking at, and is likely quite puzzled by it. The rest of the world continues to cut rates and stimulate, as global economies are still struggling. This makes for a challenging dynamic. How much does that factor in Janet Yellen’s equation? We will find out next Thursday. The Market will certainly be moving.
The correction continues to run its course. Stocks have been in a very defined trading range since the sell-off began in August. We are still in defense mode, but admittedly are seeing some pretty attractive values right now. We’re just looking for more stability. We see it further down the road. We’re all over this, and always have your back.
Enjoy your weekend. Never forget.
MF
