We remain positive in our outlook for the economy, but we could continue to see the Delta variant impact future economic data. Despite this headwind, corporate earnings have been strong and profit margins near all-time highs. The Federal Reserve is likely to announce plans to begin a slow reversal of its accommodative policy stance, but the overall fiscal and monetary environment remains stimulative. The key points for September’s update are:
- The labor market recovery has been led by the leisure and hospitality sector this year, bringing current employment in the sector to 90% of what it was immediately before the pandemic.
- Domestically, value and growth stocks continue to rotate in, and out of favor.
- Inflation expectations have still risen, but not to a level that would constrain future growth.
We hope you find the below video educational and informative. If you have any questions, please reach out to your advisor. As always, thank you for putting your trust in the Merit team.