Page 4 - November 2021 Isle of Palms Magazine_Neat
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Arthurs' Notes
It’s been a crazy year and a half for our economy and kinks in the supply
chain have made it difficult buying certain items, like a car. Since the
beginning of 2020 prices of used cars and trucks have gone up 45%, Fine
Wine 15%, Appliances 15% and Fruits and Vegetables 5%. Granted the US
Economy isn’t currently firing on all cylinders, as an economics major this is
an interesting time that will most likely be studied generations from now. In
other economic setbacks I’ve experienced, people were losing their jobs and
money was tight for most families I knew. But this feels different, jobs are
out there, money is out there (and cheap to borrow) yet some businesses
can’t take our money because they don’t currently have the product we want
to buy in stock. Purchases are being delayed but not cancelled. Which leads
me to believe there will be money on the sidelines when supply catches up
to demand further extending the run we’ve seen in financial markets. The
Fed Reserve has been patient and is very aware of the current bottlenecks
in the supply chain and most likely the reason they haven’t raised rates. Not
to make light of the shortage situation but if we saw an extreme acceleration
in growth without supply chain issues, we could see the Fed raise rates
sooner than later. However, most likely supply shortages will run into late
next year, possibly 2023 and the Federal Reserve anticipates that. Here’s
the thing, a year ago investors were worried about the election, then meme
stocks, inflation, China, etc. All markets are perpetually full of challenges
and I’m sure by the time you read this it will be no different but investors that
remain disciplined will continue to be rewarded over time.
Arthurs Wealth Management is an independent minded advisory firm. Please visit arthurswealthmanagement.com
for info or to schedule a complimentary review of your portfolio. This commentary is for informational purposes only
and is solely the opinion expressed by Arthurs Wealth Management. We reserve the right to modify our investment
strategy based on market dynamics/individual client needs.
