Categories: Family Office, Financial NewsPublished On: July 12th, 2021Comments Off on Market Update – 7/9/202117.8 min read
admin
SHARE
The market fell on Thursday after the S&P 500 and the Nasdaq hit a new high on Wednesday. The media were immediately singling out investors worried that the epidemic would affect the speed of economic recovery.
The threat of Delta variant is not news. The key is how the market interprets the news instead of the news itself. Otherwise, the stock market should not rise to new highs on Friday.
In addition to the current epidemic, another issue may have a significant impact is the expiration of debt ceiling suspension at the end of July. Due to the debt ceiling suspension over the last two years, the government has been free to spend without worrying about the debt ceiling. After the debt ceiling suspension expires, the President and Congress must discuss whether to raise the debt ceiling or to impost the suspension again.
Back to 2011, during the Obama administration, the debt ceiling was used as an excellent negotiation tool for the Republican Party asking the Democrats to reduce debt and spending. Although the antagonism in 2011 did not trigger an economic recession, the disputes and the poor economic conditions in Europe afterwards caused the S&P 500 to fall from its July 2011 high by 15 %. Therefore, the probability of short-term market volatility has greatly increased.
All images are copyright to their respective owners and are protected under international copyright laws and are protected under international copyright laws.
Disclosure TransGlobal Advisory, LLC is a Registered Investment Adviser. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where TransGlobal Advisory, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by TransGlobal Advisory, LLC unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information and comments. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. TransGlobal Advisory, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. TransGlobal Advisory, LLC may discuss and display, charts, graphs, formulas which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.
