Tag: Unemployment

A 2021 Economic Review

Written by support@seostats.com on January 17, 2022. Posted in Newsroom.

In this 2021 recap: new coronavirus variants prolong the pandemic, but the economy adapts and maintains its strength; inflation pressure mounts and the Federal Reserve decides to adjust monetary policy; the major U.S. stock indexes hit record highs

The Year in Review, Presented by The PensionmarkMeridien Team

THE YEAR IN BRIEF

The bulls overcame the bears on Wall Street in 2021 – the S&P 500 advanced nearly 27%, notching its third straight yearly gain. The economy rebounded, even as new coronavirus variants resulted in anxiety, uncertainty, and supply chain disruptions affecting small businesses, corporations, and consumers. High inflation returned for the first time in decades. By the end of the year, inflation and COVID-19 had become two of the country’s biggest daily concerns. This was reflected in wobbling consumer confidence, even as the jobless rate declined toward pre-pandemic levels.

Congress passed one massive economic stimulus package and spent much of the year debating another. Most U.S. households received checks from the federal government, and many businesses found and took advantage of new programs to help them keep their doors open. Home prices remained high, but home sales lost some of their momentum.

With 2022 approaching, the Federal Reserve adjusted its monetary policy stance and interest rate forecast. The Fed’s bond buying program is now scheduled to wrap up in March 2022, and central bank officials project short-term interest rates to rise from historic lows next year. One key question for 2022 is if the Fed can pull off a soft landing. Can it tighten and rein in inflation without hampering growth?

THE U.S. ECONOMY

Gross domestic product (GDP) came in at 6.3% for the first quarter and 6.7% for the second quarter before cooling to 2.3% for Q3, per the Bureau of Economic Analysis. In December, the Conference Board projected annualized GDP at 6.5% for the fourth quarter. ^1,2

GDP numbers like these hint at robust consumer spending, and that was certainly evident. The BEA said personal spending advanced 11.4% for Q1, 12.0% for Q2, and then 2.0% for Q3. Those big first-half jumps corresponded with business sectors reopening and vaccination rates climbing. Retail sales surged above 2020 levels – for Q2 2021, they were up 9.1% year-over-year according to the Census Bureau, and by November, the yearly gain was 18.2%. ³

Joblessness kept decreasing. The Department of Labor announced 4.2% unemployment in November: the lowest jobless rate in 20 months, down more than 2% from the start of the year. By November, the labor force had thinned by more than 2.4 million workers since the beginning of the pandemic; in some business sectors, there were more job openings than job applicants. This did not help ease supply chain bottlenecks, which affected many industries last year. ^4,5

Stimulus efforts aided the economy. The $1.9 trillion American Rescue Plan, which became law in March, brought financial aid to businesses and schools, temporarily expanded the Child Tax Credit and federal unemployment benefits, and sent cash payments of up to $1,400 to approximately 90% of households. A sequel of sorts, the Build Back Better Plan, stalled in Congress as the year ended. ⁶

Yearly consumer inflation, under 2% back in 2019, neared 7% in the fourth quarter. The Bureau of Labor Statistics also measured a 9.6% annualized gain for wholesale inflation through November. In their last policy statement of the year, Federal Reserve officials stopped referring to inflation as “transitory” (as they had earlier in 2021), projected up to three 2022 increases to the federal funds rate, and announced that the Fed’s current bond-buying program would end in March, instead of June as stated earlier. ^5,7

Elsewhere in the economy, the Conference Board’s Consumer Confidence Index rollercoastered from 87.9 in January to 128.9 in June to 109.5 for November. Existing home sales, according to the National Association of Realtors, were down 2.0% year-over-year in November; home prices, however, were up 13.9% in 12 months. ^5,8

THE GLOBAL ECONOMY

As the American and Chinese economies recovered, they helped to lift the GDP of other nations. The International Monetary Fund thinks global growth strengthened to 5.9% in 2021, offsetting the 3.1% contraction of 2020. The economies of China, Europe, and Japan respectively grew 8.0%, 5.1% and 2.4% in 2021 by IMF estimates. For 2022, the IMF projects 5.6% GDP for China, 4.2% GDP for Europe, and 3.2% GDP for Japan. ⁹

In the fall, investors worldwide feared that a real estate bubble would soon pop in China. Evergrande, the country’s second-largest apartment developer, went $300 billion into default and required a government bailout. Two other big real estate firms teetered on the edge of default. About 25% of China’s GDP rides on its real estate sector. ¹⁰

While the lingering after-effects of the Brexit impacted supply chains in Europe, the United Kingdom posted better economic growth in 2021 than the other six G-7 nations, by the estimate of the Organization for Economic Cooperation and Development. The OECD projected 6.9% growth for the U.K. economy in 2021. ¹¹

The MSCI EAFE index, which tracks developed-economy stock market performance in Asia and Europe, gained 8.78% for the year. Many of the world’s consequential stock indexes made double-digit gains in 2021. France’s CAC 40 28.85%, Taiwan’s TWII 23.66%, Mexico’s Bolsa 20.89%, and the EuroStoxx 50 20.56%. Japan’s Nikkei 225 added 4.91%, China’s Shanghai Composite 4.80%. In contrast, Brazil’s Bovespa sank 11.93% in 2021, Hong Kong’s Hang Seng 14.08%. ^12,13

QUOTE OF THE YEAR

“Life can only be understood backward, but it must be lived forwards.”

SOREN KIERKEGAARD

LOOKING BACK, LOOKING FORWARD

The world may have been troubled by the pandemic, but optimism and bullishness prevailed on Wall Street last year. The S&P 500 closed at an all-time high 70 times in 2021 (the most record closes in a year since 1995), and stock market analytics firm FactSet estimated 45.1% year-over-year earnings growth for S&P 500 companies. ¹⁴

The Nasdaq Composite ended 2021 on a six-month win streak, and the Dow Jones Industrial Average advanced for a fifth straight month in December. The S&P finished the year at 4,766.18, the Nasdaq at 15,644.97, and the Dow at 36,338.30. ¹⁴

Small cap firms also did well on the whole. The Russell 2000, widely accepted as Wall Street’s leading small-company index, rose 13.70% across 2021 to 2,245.31. ¹⁵

As bond prices dropped, interest rates in the bond market rose. The return on the 10-year Treasury reached 1.78% in March; when the bond market closed on New Year’s Eve, the 10-year note was yielding 1.51%. For much of 2020, its yield was below 1%. ^16,17

Real estate and energy surged more than any other market sectors in the S&P, both posting 2021 advances of more than 40%. The financial and tech sectors each added more than 30%. ¹⁴

MARKET INDEX	2021	2020	2019	2018
DJIA	+18.73	+7.25%	+22.34%	-5.63
NASDAQ	+21.39	+43.64%	+35.23%	-3.88
S&P 500	+26.89	+16.26%	+28.88%	-6.24

YIELD	12/31 RATE	1 YR AGO	5 YR AGO	10 YRS AGO
10-YR TREASURY	1.52%	.93%	2.45%	1.89%

^{Sources: Yahoo Finance, December 31, 2021, Treasury.gov (Bond Yield)}

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

Right now, investors are watching COVID-19 and inflation, and also watching for signals from the Federal Reserve. Can the central bank manage to alleviate price pressures deftly, and shift to a more aggressive monetary policy without unnerving financial markets?

The booming economy of 2021 could repeat in 2022. If it does, the Fed may be able to wrap up its stimulus and make up to three rate hikes this year without much protest from investors. If inflation fails to moderate, though, the Fed could orchestrate an urgent and hawkish response, to the dismay of global markets. Wall Street may pay extra attention to the yield curve (the spread between long-term and short-term interest rates on Treasury notes) and the jobless rate, to discern if there is any change in long-term inflation expectations or signs of labor market weakness. You may see turbulence on Wall Street if those signs begin to appear.

The Meridien Team may be reached at 866-871-9963 or meridienteam@pensionmark.com
https://pensionmarkmeridien.com/

Know someone who could use information like this?
Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

Pensionmark^® Financial Group, LLC (“Pensionmark”) is an investment adviser registered under the Investment Advisers Act of 1940. Pensionmark^® is affiliated through common ownership with Pensionmark Securities, LLC (member SIPC).

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (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 Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index^® (VIX^®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. The MICEX 10 Index (Russian: Индекс ММВБ10) is an unweighted price index that tracks the ten most liquid Russian stocks listed on MICEX-RTS in Moscow. The FTSE 100 Index is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. The DAX 30 is a Blue Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The FTSE Eurofirst 300 measures the performance of Europe’s largest 300 companies by market capitalization and covers 70% of Europe’s market cap. The IBEX 35 is the benchmark stock market index of the Bolsa de Madrid, Spain’s principal stock exchange. The Hang Seng Index is a free float-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The NIFTY 50 index is National Stock Exchange of India’s benchmark broad based stock market index for the Indian equity market. It represents the weighted average of 50 Indian company stocks in 12 sectors and is one of the two main stock indices used in India. The BSE SENSEX (Bombay Stock Exchange Sensitive Index), also-called the BSE 30 (BOMBAY STOCK EXCHANGE) or simply the SENSEX, is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). The Korea Composite Stock Price Index or KOSPI is the major stock market index of South Korea, representing all common stocks traded on the Korea Exchange. Nikkei 225 (Ticker: ^N225) is a stock market index for the Tokyo Stock Exchange (TSE). The Nikkei average is the most watched index of Asian stocks. The FTSE TWSE Taiwan 50 Index consists of the largest 50 companies by full market value, and is also the first narrow-based index published in Taiwan. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. The Mexican Stock Exchange commonly known as Mexican Bolsa, Mexbol, or BMV, is the only stock exchange in Mexico. The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization. The MERVAL Index (MERcado de VALores, literally Stock Exchange) is the most important index of the Buenos Aires Stock Exchange. The Bovespa Index is a gross total return index weighted by traded volume & is comprised of the most liquid stocks traded on the Sao Paulo Stock Exchange. The MSCI World Index is a free-float weighted equity index that includes developed world markets, and does not include emerging markets. The MSCI Emerging Markets Index is a float-adjusted market capitalization index consisting of indices in more than 25 emerging economies. The US Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. The PHLX Semiconductor Sector Index is a Philadelphia Stock Exchange capitalization-weighted index composed of companies primarily involved in the design, distribution, manufacture, and sale of semiconductors. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1. Trading Economics, January 1, 2022
2. Conference Board, December 15, 2021
3. The Balance, December 23, 2021 4. Federal Reserve Bank of St. Louis, December 3, 2021
5. Yahoo! Finance, December 21, 2021
6. CNN Business, March 11, 2021
7. Reuters, December 15, 2021
8. Reuters, December 22, 2021
9.. International Monetary Fund, January 1, 2022
10. Business Insider, December 23, 2021
11. Bloomberg, December 1, 2021
12. Wall Street Journal, January 1, 2022
13. Barchart.com, January 1, 2022
14. CNBC, December 30, 2021
15. CNN Business, January 1, 2022
16. CNBC, December 31, 2021
17. Yahoo! Finance, December 31, 2021
18. Treasury.gov, January 2, 2022

2021 4th Quarterly Economic Update

Written by support@seostats.com on January 12, 2022. Posted in Newsroom.

In this Q4 recap: U.S. economy confronts a new COVID-19 variant amid continuing inflation and supply chain bottlenecks. Europe institutes new social restrictions in response to a surge in Delta and Omicron variant infections. Investors turn cautious as uncertainties increase.

A review of Q4 2021, Presented by The PensionmarkMeridien Team

THE QUARTER IN BRIEF

The stock market kicked off the fourth quarter with a powerful rally in October and added to those gains into November until investors were blindsided by news of the emergence of a new COVID-19 variant, Omicron, and testimony by Fed Chair Jerome Powell that escalating inflation and an improving labor market warranted consideration of an acceleration of its bond purchase tapering plans.

Markets, as a rule, do not like surprises and uncertainty and the combination of a new variant and a suddenly more hawkish Fed sent stocks into a skid that largely erased the November’s accumulated gains. Market reaction to the Omicron news was exacerbated by when the news hit–on Black Friday, a day that typically provides less liquidity since many investors and traders are on holiday.

Investors soon learned the contours of what a more hawkish monetary policy would look like. In its mid-December meeting, the Federal Open Market Committee (FOMC) announced plans to speed up its bond purchase tapering schedule and signaled that, once tapering is concluded in March 2022, up to three rate hikes may follow.

Markets settled down into the final weeks of the quarter as early indications suggested that Omicron’s health impact was less severe than the Delta variant. Relieved that its economic consequences may be less than initially feared, reinvigorated investors jumped back into the market, pushing stocks higher into the end of December and capping a strong year of performance. Corporate profits for the third quarter were solid. Eighty-two percent of the companies comprising the Standard & Poor’s 500 Index reported earnings above Wall Street analysts’ expectations, posting an average earnings growth rate of 39.8% in the third quarter. This earnings momentum is anticipated for the fourth quarter, with an earnings growth forecast of 20.9%, which, if realized, will mark a historical high watermark in corporate profits. ¹

THE U.S. ECONOMY

After a Delta variant-induced slowdown in the third quarter, signs are pointing to a strong economic rebound in the fourth quarter and solid growth into 2022. Though the official economic growth rate for the fourth quarter won’t be reported until January’s Gross Domestic Product (GDP) report, according to the Federal Reserve Bank of Atlanta, which tracks economic data in real time, their model is indicating a 7.2% annualized real rate of Q4 GDP growth. ²

This economic rebound overcame several headwinds, including accelerating inflation, supply chain bottlenecks, a labor shortage, and a pending pivot toward monetary normalization.

The labor market evidenced considerable recovery as initial jobless claims fell steadily, while the unemployment rate shrank to 4.2% in November, even as some 600,000 Americans entered the labor market and the labor participation rate rose to pre-pandemic levels. ³

The nation’s manufacturing sector gathered momentum in the fourth quarter. The Institute for Supply Management (ISM) Manufacturing Index rose in November for the eighteenth straight month, with the trend pointing toward a faster acceleration in that growth. ⁴

Looking ahead, one survey of economists conducted by the Federal Reserve Bank of Philadelphia shows a median forecast of 3.9% in GDP growth in 2022, with stronger growth in the first half of the year and a moderating expansion in the final two quarters. ⁵

Especially noteworthy is the American consumer, the primary driver of economic growth. Americans have stockpiled $2.3 trillion of excess savings (i.e., savings above pre-pandemic levels), providing a strong underpinning to fuel future economic activity. ⁶

While the economic outlook appears positive, headwinds exist.

The economic impact of Omicron is difficult to estimate. For now, it appears unlikely to lead to widespread lockdowns, but it may pose the potential to prune economic growth at the margins.

Perhaps the most concerning potential financial risk is inflation, which has persisted at an elevated rate for longer than the Fed expected. November’s Consumer Price Index (CPI) provided little comfort, as prices jumped at a rate not seen in nearly forty years, rising 6.8% year-over-year. It was the sixth consecutive month that inflation exceeded 5%. ⁷

Shaky consumer confidence is another possible risk. Though consumers may be flush with excess savings, spending requires consumers to be confident about their personal situations and the economy. In the University of Michigan’s November consumer sentiment survey, Americans expressed less optimism than at any time since the credit crisis years, largely due to rising inflation and perceived government inaction to address it. ⁸

While additional risks may present further challenges, the overall expectation, nevertheless, is for continued economic expansion in the near- to intermediate-term.

THE GLOBAL ECONOMY

The economic outlook in European Union (EU) countries remains encouraging despite the rise in Delta and Omicron variant infections and instances of some countries, e.g., Austria and Germany, instituting fresh economic restrictions. Maintaining this economic growth momentum has been primarily a result of continued progress in the region’s vaccination efforts. As a consequence, the EU economy is projected to grow by 5.0% for the full year 2021 and by 4.3% in 2022. Domestic demand and an improving labor market are expected to drive this economic improvement, but inflation, ongoing supply chain bottlenecks, and the Omicron variant are the main risk factors that could upend this otherwise strong forecast. ⁹

The Bank of England is less sanguine about the prospects for the United Kingdom’s economic growth going forward. While GDP growth in 2021 is expected to be a very healthy 7.0%, the estimated growth rate for the fourth quarter was shaved due to supply chain disruptions. For 2022, the U.K.’s central bank is forecasting a 5.0% expansion in GDP. Similar to other countries, continuing supply chain problems, inflation, and the spread of COVID-19 represent risks to the U.K. economy in the months ahead. ¹⁰

Economic growth in China slowed considerably in the latter part of 2021. In fact, GDP growth in the third quarter (+4.9%) was the slowest growth rate in a year, and materially lower than the second quarter growth rate of 7.9%. Economic growth is expected to further decelerate in the fourth quarter and remain weak into the first half of 2022. There are a variety of factors that are weighing on China’s economy, including its zero-COVID policy, power shortages, massive debts held by property developers, and the drag of government regulation on private sector businesses. ¹¹

The Bank of Japan shaved its forecast for economic growth in 2021 from 3.8% to 3.4%, but raised its estimate for GDP expansion in 2022 to 2.9%, up from 2.7%, citing the effects of COVID-19 infections and the expectation that the Japanese economy would rebound as the COVID-19 overhang wanes. ¹²

The MSCI-EAFE Index, which tracks developed overseas markets, rose 2.40% in Q4, while emerging markets, as measured by the MSCI-EM (Emerging Markets) Index, fell 1.68%. ¹³

T I P O F T H E QUARTER

Consider ramping up your college savings with rewards programs. There are credit cards and online shopping programs available that can allow you to direct a steady stream of rebates toward your education fund.

LOOKING BACK, LOOKING FORWARD

Investors enjoyed robust stock market returns in 2021. It was a performance that had less to do with P/E ratio (Price-to-Earnings) expansion – the market P/E actually came off its high – and more a result of strong earnings growth.

One overlooked feature of the stock market’s 2021 performance was the successive waves of rotational corrections. From the view of major indices, stocks enjoyed a steady rise throughout the year without a correction (i.e., a decline of 10%-20%), suggesting a generally stable, even placid, stock market.

However, beneath this smooth ascent were periods of volatility for specific industry groups. For example, as of November 26, while the year-to-date return on the S&P 500 was 22%, 92% of its constituent stocks experienced at least a 10% decline from their YTD highs, with an average drawdown of 18%. Similarly, the technology-heavy NASDAQ Composite, which was up by 20%, saw 89% of stocks with a drawdown of at least 10% and an average retreat from YTD highs of 40%. ¹⁴

In other words, while the major market indices did not experience a correction, most stocks comprising these indices suffered corrections at some time during the year.

It is unrealistic to expect a repeat of the 2021’s outsized gains, but the consensus of Wall Street analysts is one of modest price gains in 2022 amid continued economic growth and low, though rising, interest rates.

While the market may be affected by multiple “known unknowns,” e.g., geopolitical flare-ups, trade frictions, or inflation, there are several key ones worth highlighting.

The Federal Reserve began to pivot toward monetary normalization, announcing in December an acceleration of bond tapering and the possibility of up to three interest rate hikes. Markets expected this, so this may already be priced in. However, if the Fed finds itself behind the inflation curve and needs to increase the number of rate hikes or accelerate their pace, it may unsettle investors.

Corporate earnings growth is anticipated to moderate in 2022. This is to be expected considering the rate of economic expansion will likely slow and its comparative period, 2021, established such a high bar.

That said, 4Q 2021 earnings (reported in 1Q 2022) is forecast to grow by 20.9%, which, if that materializes, means 2021 full-year earnings growth will be 45.0%. For 2022 Wall Street analysts are projecting an 8.8% jump in corporate profits. This is a substantial come-down, but it represents healthy growth from a high watermark. Should companies exceed these expectations, it may help support higher valuations. ¹⁵

Another important market influence may be a slowdown in China’s economy. A deceleration in the growth of the world’s second largest economy may translate into lower consumption of imported consumer goods or production of manufactured goods, representing a potential risk to the global economy.

Possible rate hikes, higher inflation, and moderating economic growth may sound like a recipe for a tepid stock market, but history tells us that stocks are more likely to rise in a rising interest rate environment and during periods of moderate economic deceleration. While past performance is not a guarantee of future returns, it suggests that markets may advance under less-than-optimal circumstances. ¹⁶

MARKET INDEX	12/31 CLOSE	Q4 % CHANGE	Y-T-D % CHANGE
DJIA	36,338.30	+7.37%	+18.73%
NASDAQ	15,644.97	+8.28%	+21.39%
S&P 500	4,766.18	+10.65%	+26.89%

YIELD	12/31 RATE	1 MO AGO	1 YR AGO
10-YR TREASURY	1.51%	1.44%	0.92%

^{Sources: Yahoo Finance, December 31, 2021, Treasury.gov (Bond Yield)}

The Meridien Team may be reached at 866-871-9963 or meridienteam@pensionmark.com
https://pensionmarkmeridien.com/

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (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 Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index ^® (VIX ^® ) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx ^® , and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade 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 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 measure of 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 index. 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. The U.S. Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:
1. factset.com, December 2, 2021
2. Federal Reserve Bank of Atlanta, January 4, 2022
3. wsj.com, December 3, 2021
4. Institute for Supply Management, November 2021
5. philadelphiafed.org, November 15, 2021
6. bloomberg.com, October 17, 2021
7. wsj.com, December 10, 2021
8. The Index of Consumer Sentiment, December 2021
9. ec.europa.eu, November 11, 2021
10. Bank of England Monetary Policy Report, November 2021
11. Bank of Japan, October 2021
12. Focus Economics, December 2021
13. msci.com, December 2021
14. 2022 Schwab Market Outlook, December 6, 2021
15. factset.com, December 2, 202116. fidelity.com, October 27, 2021

Quarterly Economic Update

Written by support@seostats.com on March 2, 2021. Posted in Quarterly Newsletter.

In this Q4 recap: the appearance of two COVID-19 vaccines gives businesses and consumers hope and lifts stocks; U.S. lawmakers approve a second financial stimulus; European negotiators sign off on a post-Brexit trade deal.

A review of Q4 2020, Presented by The PensionmarkMeridien Team

THE QUARTER IN BRIEF

On Wall Street, the fourth quarter’s biggest development had everything to do with science and medicine. In November, news that two vaccines had been highly effective against COVID-19 in clinical trials strengthened Wall Street’s fall rally. The Food and Drug Administration (FDA) authorized both vaccines for emergency use weeks later.

Two important deals were struck after much negotiation. In the nation’s capital, Congress approved a second economic stimulus in response to the pandemic. Overseas, the United Kingdom and the European Union met the deadline to forge a post-Brexit trade agreement.

All three major Wall Street indices ended 2020 with 12-month gains, with the Nasdaq Composite far outpacing the Dow Jones Industrial Average and S&P 500. As a tragic year ended, participants in financial markets here and abroad hoped that vaccine rollouts, further economic support measures, and dovish monetary policies would help stabilize the global economy in 2021.

THE U.S. ECONOMY

The federal government’s Operation Warp Speed produced results. In December, the FDA greenlighted the immediate distribution of two COVID-19 vaccines, both of which were found more than 90% effective in clinical trials. States began vaccinating health care workers and residents of long-term care facilities on December 14. On Main Street and Wall Street, there was hope that the end of the pandemic was in sight, albeit not near at hand. ^1,2

In the second half of December, Capitol Hill legislators approved a new economic stimulus for American households, which President Donald Trump subsequently signed into law. The new stimulus included $600 economic relief payments for most taxpayers and at least a 10-week extension of the enhanced $300 federal jobless benefit. ³

The Department of Labor statistics showed headline unemployment lessening in the quarter, dipping to 6.7% in November from 6.9% in October. The U-6 jobless rate, which counts both the unemployed and the underemployed, was 12.1% in October, 12.0% a month later. The economy added 610,000 net new jobs in the quarter’s first month, and 245,000 in its second. ⁴

Understandably given fall headlines, consumer spending and consumer confidence wavered. The Bureau of Economic Analysis said personal spending contracted in both October (0.3%) and November (0.4%), along with personal incomes (down 0.6% in October, and 1.1% in November). Retail sales, ticking down only 0.1% in the tenth month of the year, slumped 1.1% during the eleventh, according to the Census Bureau. The University of Michigan’s monthly consumer sentiment gauge came in at just 76.9 in October and 80.7 in November; the Conference Board’s monthly consumer confidence index declined from 92.9 to 88.6 in the same time frame. ⁴

Both the service and manufacturing sectors were growing, at least according to the monthly purchasing manager indices (PMIs) at the Institute for Supply Management. ISM states that when these indices are above 50, the sectors are expanding. Its monthly manufacturing PMI was at 59.3 in October and 57.5 in November; its services PMI came in at 56.6 in October and 55.9 the following month. ⁴

In contrast to most of the above economic indicators, existing home sales rose in November and declined in October. National Association of Realtors reports showed residential resales improving 4.4% in the opening month of the quarter, followed by a 2.5% November dip. As for new homes, the Census Bureau said they plunged 11.0% in November, following a 2.1% October descent. ⁴ Federal Reserve chairman Jerome Powell on December 16 said that the central bank would keep buying bonds until the economy showed “substantial” improvement. To many traders and market analysts, that commitment signaled that interest rates might stay near historic lows for years; in fact, the latest consensus opinion among Fed policymakers projects no change for the federal funds rate through 2023. Last month, the Fed forecast a 2.4% contraction for the U.S. economy in 2020, improved from a 3.7% estimate in September. For 2021, it sees economic growth of 4.2% and unemployment declining to 5.0% by year’s end.

THE GLOBAL ECONOMY

The United Kingdom and European Union hammered out a post-Brexit trade agreement, beating a year-end deadline; Michel Barnier, the E.U.’s chief negotiator in the deal, called the Brexit “an act of mutual weakening.” The E.U. has lost one of its largest members, one that accounted for about a sixth of its economy. While the U.K. gains some political control, its residents can no longer live or work in much of Europe with the ease they once knew, and its economy and financial industry may face potential setbacks. ⁶

China’s powerful economy was expanding again, according to China government reports. The nation’s official factory sector purchasing manager index stood at 51.9 in December, down from 52.1 in November; anything over 50 signifies sector growth. China’s services PMI has been above 50 for ten months. China’s government never announced an economic growth target last year; according to CNBC, its 2020 gross domestic product will approach 2.0%, compared to the 6.0% GDP of 2019. ^7,8

The MSCI EAFE Index, tracking shares in 21 stock exchanges outside North America, rose 15.75% for Q4. The top 3-month gainer among national benchmarks was Brazil’s Bovespa, up 25.81% in Q4; that was hardly the only major climb. India’s Nifty 50 rose 24.31%, South Korea’s Kospi Composite 23.44%, and Spain’s IBEX 35 20.21%. In Japan, the Nikkei 225 added 18.37%. Hong Kong’s Hang Seng improved 16.08%, France’s CAC 40 15.57%. China’s Shanghai Composite gained 7.92%, Germany’s DAX 7.51%. ^9,10

T I P O F T H E QUARTER

Thinking about financing a new car or truck? If so, think about gap insurance: auto insurance designed to cover the “gap” between the loan balance and the vehicle’s actual value. Should a new vehicle be stolen or damaged, the standard insurance payment may correspond to its actual value, which could be less than what you owe on it. Gap insurance addresses this difference.

LOOKING BACK, LOOKING FORWARD

Optimism grew on Wall Street as the quarter progressed. The Nasdaq Composite, S&P 500, and Dow Jones Industrial Average all saw double-digit Q4 gains, and all three benchmarks advanced for 2020. ¹¹

The Nasdaq had a banner year, as traders readily bought shares of technology firms whose products helped people work at home. It wrapped up 2020 at 12,888.28. The S&P 500 settled at 3,756.07 on December 31, while the Dow ended the year at 30,606.48. ¹¹

Treasury yields rose in Q4, with the 10-year note approaching 1%. Its peak yield for the quarter: 0.98%, on November 10. ¹²

In this past quarter, bullish sentiment was widespread on Wall Street. In the opening quarter, investor optimism may rise as the vaccine gets more widely distributed. Frustrations in the first few weeks of Q1 may test stocks; on the other hand, measurable progress against the pandemic could renew enthusiasm.

MARKET INDEX	Y-T-D CHANGE	Q4 CHANGE	Q3 CHANGE
DJIA	+7.25	+10.17	+7.63
NASDAQ	+43.64	+15.41	+11.02
S&P 500	+16.26	+11.69	+8.47

YIELD	12/31 RATE	1 MO AGO	1 YR AGO
10-YR TREASURY	0.93	0.69	1.92

^{Sources: Yahoo Finance, December 31, 2020}

Many Americans believe that 2021 will be better than 2020. In the glass-half-full outlook, with most of the nation vaccinated by spring, it takes until fall in the glass-half-empty view. In either scenario, business sectors hurt by the stay-at-home orders could bounce back before the end of the year. ¹³

Q U O T E O F T H E QUARTER

“Never give up trying to build the world you can see, even if others can’t see it.”

SIMON SINEK

The Meridien Team may be reached at 866-871-9963 or meridienteam@pensionmark.com
https://pensionmarkmeridien.com/

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (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 Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index ^® (VIX ^® ) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx ^® , and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade 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 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 measure of 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 index. 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. The U.S. Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1. CNN, November 18, 2020

2. U.S. Department of Health & Human Services, December 21, 2020

3. Minneapolis Star-Tribune, December 27, 2020

4. Marketwatch.com, December 31, 2020

5. New York Times, December 16, 2020

6. New York Times, December 31, 2020

7. Reuters, December 30, 2020

8. CNBC, December 30, 2020

9. Wall Street Journal, December 31, 2020

10. Trade Economics, December 31, 2020

11. Wall Street Journal, December 31, 2020

12. Treasury.gov, December 31, 2020

13. Wall Street Journal, December 31, 2020

Quarterly Economic Update

Written by support@seostats.com on October 8, 2020. Posted in Quarterly Newsletter.

In this Q3 recap: stocks post further 2020 gains as the economy bounces back and the Federal Reserve announces a shift in its approach to inflation.

A review of Q3 2020, Presented by The PensionmarkMeridien Team

THE QUARTER IN BRIEF

The summer brought an economic rebound and a continuation of the stock market rally that began in spring. In late September, the Federal Reserve Bank of Atlanta’s GDPNow tracker estimated real Gross Domestic Product (GDP) growth of 32.0% for the third quarter. All three of the major Wall Street benchmarks advanced in Q3; the S&P 500 added nearly 8%, ending the quarter up about 4% for the year. Even so, U.S. equities slumped in September as traders worried that the stock market might be getting ahead of the economy. ^1,2

In Washington, the Federal Reserve altered its monetary policy stance and forecast low-interest rates for the near future. Hopes for another economic stimulus dimmed in Congress. On Main Street, the coronavirus pandemic remained top of mind, but improvements in hiring, consumer confidence, and retail sales were evident. Entering the fourth quarter, analysts wondered how adroitly the financial markets might manage some unknowns: a potential uptick in COVID-19 cases in the fall, the pace of vaccine development, the outcome of the presidential election, and undetermined prospects for additional economic support of businesses and households

THE U.S. ECONOMY

Many positive signals appeared in the quarter. Millions of Americans went to work again; monthly net job growth topped 1.7 million in July and 1.3 million a month later. Unemployment, which had hit 14.7% in April, fell from 10.2% in July to 8.4% in August, and the U-6 rate counting both underemployed and unemployed Americans declined from 16.5% to 14.2%. ^3,4

Consumer confidence, as measured by the Conference Board’s monthly index, leaped to 101.8 in August from 86.3 in July. Households kept up their buying—retail sales were up year-over-year through August even though supplemental unemployment benefits expired at the end of July. ³

Industries also grew, according to research from the Institute for Supply Management. When ISM’s Monthly Purchasing Manager Index for the manufacturing and services sector surpasses 50, those sectors are judged by ISM to be expanding. ISM’s services PMI was at 58.1 in July and 56.9 in August; its manufacturing index reached 54.2 in July (a month that saw a 6.4% rise in U.S. factory orders) and 56.0 in August. ³

Home sales soared as summer began, and although that momentum tailed off, sales did not retreat. Residential resales were up 24.7% in July, and another 2.4% in August. New home buying increased 4.8% for August after a 14.7% July climb. Housing starts and building permits were both up 17.9% in the first month of the quarter, but then they both declined; permits dipped 0.9% and starts 5.1% in the eighth month of the year. ³

For more than a century, the Federal Reserve has had two primary monetary policy objectives: to manage inflation and to guide the economy toward a state of maximum employment. Historically, managing inflation has come first. So, it made news on August 27 when Fed Chairman Jerome Powell announced that the central bank would “seek to achieve inflation that averages 2 percent over time,” rather than proactively adjust short-term interest rates when inflation approaches that established target. In other words, it would tolerate a little more inflation than it had in the past as a trade-off for spurring the economy. The Fed kept the federal funds rate in the 0%-0.25% range in the quarter, and its September consensus interest rate forecast showed it expected no change for short-term interest rates through 2022. ^4,5

THE GLOBAL ECONOMY

As economies worldwide continued to labor under the coronavirus pandemic, the International Monetary Fund (IMF) and Organization for Economic Cooperation and Development (OECD) revised their estimates of global economic activity for 2020 and 2021. The IMF sees a 3.0% contraction for global Gross Domestic Product (GDP) this year, with the global economy growing 5.8% next year. The OECD estimates a 4.5% pullback for global GDP in 2020, and then a 5.0% rebound in 2021. ⁶

The quarter ended with no agreement yet on a post-Brexit trade deal between the United Kingdom and the European Union, as the post-Brexit transition period ends December 31. Complicating matters, U.K. lawmakers introduced a bill that would disregard conditions for trade with Northern Ireland established as part of Brexit, which the E.U. has hotly protested. U.K. Prime Minister Boris Johnson wants both parties to reach a free trade agreement this month; Johnson is aiming for a pact without quotas or tariffs attached, similar to the arrangement the U.K. has with Canada. ⁷

Looking at foreign stock exchanges, some significant quarterly gains stand out. South Korea’s Kospi index rose 11.2% in three months; no other consequential overseas benchmark advanced double digits in Q3l. China’s Shanghai Composite added 7.82%, Taiwan’s TWII 7.70%, Argentina’s Merval 4.69%, Japan’s Nikkei 225 4.02%, and Germany’s DAX 3.65%. On the other side of the ledger, Hong Kong’s Hang Seng retreated 3.96%, and Spain’s IBEX 35 dipped 7.12%. MSCI’s EAFE index, which tracks large companies across developed countries in Europe and Asia, rose 4.90% in Q3. ^8,9

T I P O F T H E QUARTER

For some businesses, production and sales slow in the fourth quarter. This is a good time for business owners to allow employees to pursue education and training opportunities relevant to 2021 organizational goals

LOOKING BACK, LOOKING FORWARD

Stocks powered through July and August, entering historic territory in mid-summer. In particular, August saw a powerful rally. The Nasdaq Composite climbed 9.59% in August, and the Dow Jones Industrial Average gained 7.57%, finishing with its best August since 1984. Advancing 7.01% to cap a 5-month winning streak, the S&P 500 had its best August since 1986. September got off to a good start, with a new record close for the S&P: 3,580.84. ^10,11

Then, reservations about the rally surfaced. Traders began to question the sustainability of the summer economic recovery, and whether a fall uptick in coronavirus infections might hurt business and consumer spending. The S&P ended September at 3,363.00, retreating 3.92% for the month. The Dow lost 2.28% in September to fall to 27,781.70, and the Nasdaq gave up 5.16%, declining to 11,167.51. ^12,13

The 10-year Treasury yield spent all of Q3 between 0.52% and 0.74%, reaching the top of that range in late August. ¹⁴

Wall Street enters the fourth quarter with a bit of uncertainty. The November election results may produce any number of reactions. There are only educated guesses as to when coronavirus vaccines may appear, and how effective they may be. The first reading on 3rd-quarter Gross Domestic Product growth is on October 27, roughly one week before election day.

MARKET INDEX	Y-T-D CHANGE	Q3 CHANGE	Q2 CHANGE
DJIA	-2.65	+7.63	+17.77
NASDAQ	+24.46	+11.02	+30.63
S&P 500	+4.09	+8.47	+19.95

YIELD	9/30 RATE	3 MO AGO	1 YR AGO
10-YR TREASURY	0.69	0.66	1.68

^{Sources: wsj.com, cnbc.com, treasury.gov, finance.google.com – 9/30/2020}

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year Treasury yield = projected return at maturity given expected inflation expressed as a percentage.

Federal Reserve officials expect low-interest rates and very little inflation through 2022. Sustained low-interest rates could drive more borrowing and business investment, and improve the outlook for the housing market.

Q U O T E O F T H E QUARTER

“Adversity is always the partner of progress.”

JOHN C. MAXWELL

The Meridien Team may be reached at 866-871-9963 or meridienteam@pensionmark.com
https://pensionmarkmeridien.com/

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (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 Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index ^® (VIX ^® ) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx ^® , and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade 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 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 measure of 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 index. 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. The U.S. Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

^{1. Federal Reserve Bank of Atlanta, September 25, 2020}

^{2. Wall Street Journal, September 30, 2020}

^{3. Zacks.com, September 30, 2020}

^{4. Forbes, September 16, 2020}

^{5. Nasdaq.com, August 27, 2020}

^{6. Nasdaq.com, September 30, 2020}

^{7. Associated Press, September 29, 2020}

^{8. Business Insider, September 30, 2020}

^{9. Wall Street Journal, September 30, 2020}

^{10. CNBC, August 31, 2020}

^{11. Wall Street Journal, September 2, 2020}

^{12. CNBC, September 30, 2020}

^{13. Wall Street Journal, September 30, 2020}

^{14. Treasury.gov, September 30, 2020}