Page 4 - August 2021 Isle of Palms Magazine (1)_Neat

Arthurs' Notes

It’s hard to believe we are more than halfway through The current economic environment we are in can
the year and things have changed quite a bit since look quite contradicting on paper. Deflationary signals
last July.Vacations are being booked, people are are here (high unemployment) along with inflationary
traveling again and it feels a bit like the pent-up signals (used car and home prices up 30% and 13%
demand is hitting the streets, literally with more cars respectively). Though I never expected to see
on the road. That being said, there are still nearly 8 contradicting economic data like this, I also never
million jobs lost during the pandemic that are yet to thought I’d live through a pandemic. For the media
be replaced and unemployment rate is still at 6%. I it’s easy to run with one side of the story and say
think that some people “found themselves” during the “hyperinflation is on the way!” or “labor wars are
pandemic, realized that some things are more here!” but if you dig deep, I don’t think either side is
important than their jobs and decided to either take a an accurate depiction of what is currently transpiring
break, start a business or change fields. Fed in the real world. Despite what the talking heads may
Chairman Jerome Powell said back in June, “It may tell you, higher inflation doesn’t always have to be a
be hard to match up with a new job and people feel scary development. In fact, your used car value going
they can wait a little longer and shop carefully”. up as well as your home value could even make
Regardless, change is in the air. I learned at a very American’s feel better about their financial situation.
young age that those who can’t adapt to change will Now have we felt pockets of inflation the past year?
get left in the dust. Being an optimist, I believe Yes, but mainly in grocery stores. Couldn’t that just
Americans will embrace their post pandemic life, be temporary due to the fact we couldn’t eat at
adapt and be happy learning new skillsets they are restaurants for so long and everyone was forced to
passionate about. I also believe that many folks go to Publix or Harris Teeter? All food for thought -
stockpiled cash during last year's lockdown when pun intended. One thing I do know is that traditionally
they did not travel or eat out, thus buying them time. the stock market has done well during times of higher
This doesn’t mean they aren’t willing to work; they inflation and so far, has continued that trend year to
are just awaiting the right opportunity to emerge. I’ve date. That being said, I can’t predict unexpected
also experienced first-hand accounts of people that challenges ahead that could affect markets but I’m
love their job come back stronger and happier always on the lookout for them. This economic
because they missed it and were fortunate to go environment is new to everyone and it’s important we
back, possibly making them more efficient. remain open-minded and observant on trends that
will work well long-term as opposed to short-term
speculative headlines.

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commentary is for informational purposes only and is solely the opinion expressed by Arthurs Wealth
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dynamics/individual client needs.