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The Weekly Wealth Report

June 14, 2021
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The Week on Wall Street

Stocks ended the week mixed as investors appeared to shrug off a hotter-than-expected inflation report.

The Dow Jones Industrial Average slipped 0.80%, while the S&P 500 advanced 0.41%. The Nasdaq Composite index led, tacking on 1.85%. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.31%.

FACT OF THE WEEK

On the third Sunday in June, Father’s Day honors the role fathers play in the family structure and society. The day recognizes not just fathers, but the father figures in our lives. These are the men we look up to who set solid examples for us and guide us throughout our lives.

It wasn’t until 1966 that President Lyndon B. Johnson issued the first presidential proclamation honoring fathers on the third Sunday in June. The holiday wasn’t made an annual event until President Richard Nixon signed it into law, making it a permanent national holiday in 1972, over 50 years after Mother’s Day came into existence.

MARKET MINUTE

Another Quiet Week

The market traded in a narrow range for much of last week as investors anxiously awaited the release of the Consumer Price Index (CPI) on Thursday.

May’s CPI saw an increase in inflation that exceeded most expectations. Paradoxically, markets advanced on the news, sending the S&P 500 to a new record close and the technology-heavy NASDAQ Composite higher. Perhaps equally unexpected was the decline in the 10-year Treasury yield, which slipped to 1.45%, touching its lowest level in three months.

On Friday, stocks were unable to materially build on the previous day’s advance, though the S&P 500 managed to add onto its record Thursday close.

Inflation Trends

Consumer prices headed higher in May, rising 0.6% from April and by 5.0% from a year ago. It was the largest jump in the CPI since August 2008. Core inflation, which excludes food and energy prices, rose 3.8% — the sharpest increase in nearly three decades.

Automobile prices were one of the primary contributors to May’s number. Used car and truck prices jumped 7.3% month-over-month and by 29.7% from a year ago. New cars experienced their highest monthly increase since October 2009 as a result of an inventory shortage stemming from tightness in the semiconductor supply.

FINANCIAL STRATEGY OF THE WEEK

Are You Prepared for a Natural Disaster?

Natural disasters such as hurricanes, earthquakes, or fires can happen at any time which is why it's important to be prepared before disaster strikes. Here are a few tips to help you prepare in case anything happens:

Update your family's emergency plans: Updating your emergency plans can include knowing where to go, where all important documents and possessions are located, and what you need to be prepared for. Check up on the emergency plans for your home or business frequently because things can change.

Create digital copies of important documents: Most financial organizations like banks and insurance companies provide digital copies of bank statements, tax returns, and insurance policies anyway, and having all these digital copies saved and organized is a good practice to get into. If you only have paper copies of important documents, scan them and save them to your computer in case you can't access them in an emergency.

Document valuables: It's a good idea to document valuables to make it easier to claim insurance and tax benefits after a natural disaster. A disaster loss workbook will help you compile a list of belongings and photographs that can make this process even easier for both the IRS and your insurance provider.

The best time to prepare for an emergency is always when you don't need to, not after the fact. These tips will help you have everything you need ready in the case of a natural disaster or other emergencies.

As always, please let us know if there is anything we can help with along the way or any financial concerns you may have.

Have a great week!