One of the best examples of eternal optimism is author J.K. Rowling’s success story. Her original Harry Potter novel was rejected 12 times before it was published. Despite these setbacks, Rowling never stopped believing in her idea. She was ultimately rewarded for her perseverance, and more often than not, investors are rewarded for their optimism. The U.S., Canadian, and European equity markets continued their strong rally from 2020 through the first 8 months of 2021. Emerging markets, however, have lagged. Investment sentiment changed quickly in September due to the increase in the COVID-19 Delta variant, Evergrande in China, debt ceiling debate in the United States and an increase in energy prices. However, over the medium term there may be even more reasons for optimism including accommodative monetary policy, good global economic activity, strong earnings growth and cheaper valuations.
In this month’s monthly roundup of market commentary, I wanted to reflect on how financial markets performed in Q3, how September lived up to its historic reputation as being the weakest month of the year, and some interesting economic points as we move into the final quarter of 2021 and into 2022. We continue to focus on the data that is most relevant to the macro environment, equity and fixed income markets and portfolio positioning.
I hope you find September’s monthly roundup informative and of value. Lastly, as you may have come to realize – I love charts and graphs!
Almost every success story involves some bumps along the way. When it comes to investing, the best results may come to those who keep an optimistic outlook while taking an analytical approach to their portfolio.