Despite the Noise, We Continue To Trust in America's Resilience
In the third quarter, capital markets contended with the prolonged COVID-19 pandemic, weakening or ambiguous economic data, global turmoil related to events in Afghanistan, China and other regions, US politics, the Federal Reserve, inflation, interest rates, and extreme weather systems. That is a lot!
In these uncertain times, it’s very hard to track all the moving parts and even harder to stay above the short-term fray to focus on the big picture. Our November 2021 Macroeconomic Outlook aims to make sense of all the noise in a still-strong and resilient market environment.
- We must be prepared for noise in the capital markets as governments, companies and individuals work to find their footing in the wake of the pandemic.
- Healthy corporate earnings and flat price-to-earnings ratios are a foundation for robust markets and GDP growth rolling into next year.
- A post-pandemic environment with reasonably low interest rates, a normalized supply chain and consumers who are in a very good financial position could provide a very favorable environment for a continuation of the economic and investment trends of the past few months.