A September Slowdown? The US economy has had its foot on the gas pedal since its sustainable reopening that began this past spring, with economic growth forecasts consistently revised higher amid elevated consumer confidence and improving activity metrics. Given the resilient macroeconomic backdrop, the equity market was full speed ahead as the S&P 500 notched its seventh consecutive month of positive returns in August. With the recovery seemingly on autopilot, investors had become accustomed to living in the fast lane. However, our GPS signaled that congestion may be ahead given the multitude of critical economic, political, and monetary policy events this month. This near-term gridlock should not lead to a premature exit; rather, strong fundamentals suggest that patience will see the economy and equity market regain their speed as we go into 2022.
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