Nearing the End: November Market Update

As we approach the end of the year, market news keeps coming. From the continued debt crisis to insanely low interest rates, and the S&P 500 enjoying a nice run, it’s hard to keep up with everything and understand how to react.

In this month’s market update, we’ll dig into the latest in market news, along with what it means for you.

The Federal Debt Crisis Continues

As the United States federal debt crisis continues, you may wonder how this will impact you. We discussed the crisis, the debt ceiling, and the potential for a trillion-dollar coin at length last month. As we previously explored, federal debt and taxes frequently move together. When the government needs money to cover debt, it may choose to raise taxes to cover it.

While this may not drastically change your plans, it’s important to consider how increased taxes could impact you. If possible, explore opportunities to shelter additional income through tax-advantaged retirement savings vehicles. 

Americans Take Advantage of Low Interest Rates

Interest rates have continued to be incredibly low over recent months. This allows Americans to have low monthly payments on assets like mortgages, rental properties, or vehicles. This creates an increase in consumer cash flow and, therefore, increased spending.

This may be a good time to refinance and pay less interest over the course of your loan. If you’ve been tight on bills in recent months, this can help free up additional cash to make you more comfortable. Additionally, you can consider investing the difference between your old payment and your new in your retirement account.

The Impact of Ongoing Supply Chain Problems

Supply chain problems have continued, driving prices up significantly for many consumer and commercial goods. In the short term, it has changed the supply and demand curve. Many items have seen an increase in price because we can’t get the supply across the country to meet the demand. 

This is all caused by a labor shortage. By the time this is over, there will be pent-up demand that will continue to push prices higher.

Your Market Takeaways

This turbulence is expected to continue over the coming months. However, like always, it’s important to understand that 50 years from now, the craziest highs (and the craziest lows) will all be tiny blips on an even larger market scale we can’t even imagine today.

If you’re wondering how to react to recent changes in the market, schedule time with one of our experts to discuss.

The information contained in this material is intended to provide general information about Anew Advisors and its services. It is not intended to offer investment or tax advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Please consult a tax professional for tax advice. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.