This week was all about a tug of war between the infrastructure bill that was passed in the Senate and the Delta variant.
Delta seems to barely impact markets. But it has put a damper on consumer confidence, which fell to its lowest level in ten years. Consumers are a fickle bunch, so only time will tell if they're going to hibernate this winter or if it reflects a knee jerk, emotional response to high inflation and Delta cases.
The Trillion Dollar infrastructure bill that was passed by the Senate was a powerful counterweight to rising Delta cases, as far as stock market reaction goes.
This is cold, but if Delta is perceived as something that pushes back the Federal Reserve's taper timeline, and slows the economy enough to tamp down inflation, then stocks could continue their grind higher. If Delta cases go down, the reflation trade is back on and stocks could grind higher. It's a "heads I win, tails you lose" market for the bears. For this past week, anyway.
I've been talking about this topic all week on my livestream. For those of you who have been tuning in and asking questions, sharing words of wisdom and encouragement , thank you! If you're not watching the livestream, you could catch it in replay if we are connected on social media or if you follow my YouTube channel. Links below.
Highlights form this week's livestreams are below.
And while you're watching them, please subscribe to my YouTube channel.
My livestream show is called Be the Boss of Your Money. I broadcast every Monday through Thursday at 4:30 PM EST on LinkedIn, YouTube, and Facebook. You could watch the replays immediately following the livestream on my timelines.
Thanks and see you next week,
Mitch
