Treasury Secretary\nJanet Yellen Spooks Markets with Inflation Comment \u2013 <\/strong>Treasury Secretary\nJanet Yellen sparked some selling pressure in the equity markets Tuesday when\nshe inferred that interest rates may need to move higher to keep the economy\nfrom overheating. She was referring to the effect that $4 trillion in\nadditional government spending could have on growth, which in a sense also\nprovided a talking point for those opposed to additional spending plans. For equity\nmarkets, there has been a recent history of downside volatility, over short\nstretches, any time someone at the Fed or Treasury implies any type of monetary\ntightening. Yellen\u2019s comments sparked a similar outcome. Interestingly enough,\nYellen walked back her comments later in the day, stating that \u201cI don\u2019t think\nthere is going to be an inflationary problem, but if there is, the Fed can be\ncounted on to address it.\u201d Early\nsigns are pointing to at least short-term inflationary pressures: consumer\nprices jumped 2.6% from March 2020 to March 2021.<\/p>\n\n\n\n ______________________________________________________________________<\/p>\n\n\n\n How to Navigate Through The Market Despite The Unknowns<\/a><\/strong><\/p>\n\n\n\n This\npast year has proved to many investors that any market outcome is possible. Oil\nprices have seen a solid recovery, and Biden has passed the $1.9 trillion\nAmerican Rescue Act, but what\u2019s next? Questions may arise, such as: Are we on\nthe road to full economic recovery? If so, how long will it take?<\/p>\n\n\n\n To\nbetter navigate through the market\u2019s ups and downs, it\u2019s important to be\nprepared for both the good and bad. In this report, we look at whether the\nbulls or the bears will dominate in 2021. We also take a look at:<\/p>\n\n\n\n If you have $500,000 or\nmore to invest and want to learn more, download your guide today!<\/p>\n\n\n\n Download Our Just Released, \u201cMay Market Strategy Guide\u201d<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n ______________________________________________________________________<\/p>\n\n\n\n Supply Chain\nBottlenecks Continue to Haunt Automakers \u2013 <\/strong>Over 70 years ago, in 1950, a\nToyota executive named Taiichi Ohno visited a U.S. supermarket and was amazed. He\nwas impressed at how shelves were restocked as soon as they were emptied, even\nthough storage at supermarkets was limited. Ohno\u2019s amazement gave way to \u201cjust\nin time\u201d inventory management for Toyota and other automakers. Instead of\nkeeping warehouses full of steel and other components, supply chains were\ndeveloped to have inputs needed to assemble cars without having to stock parts.\nAutomakers have been following this model for decades, but the pandemic has\nturned the process on its head. Toyota has been stockpiling some parts up to\nfour months; Volkswagen is building six factories to make its own batteries; General\nMotors is building a $2.3 billion factory to produce enough batteries for\nhundreds of thousands of vehicles a year; and of course, Tesla is disrupting\nthe business model by seeking to lock-up access to raw materials, namely\nnickel. With the effect of the pandemic coupled with the Suez Canal fiasco and\nthe storm in Texas, automakers have been struggling to obtain parts needed to\nmanufacture cars. As you can see in the chart below, the inventory to sales\nratio is the lowest it has been in over a decade.3<\/sup><\/p>\n\n\n\n While the Housing\nMarket Booms, Commercial Real Estate Sputters \u2013 <\/strong>Over the last year, one of\nthe biggest economic takeaways was the \u201cK-shaped\u201d economic recovery. During the\nsummer of 2020 and thereafter, the \u201cK\u201d referred to some parts of the economy\nthriving in the economy (namely, the digital economy), and others suffering\ngreatly (hospitality, travel, retail). At this stage, the economy is now\nexperiencing a broad-based recovery, but the \u201cK\u201d still exists in real estate.\nSpending on residential building (housing) rose for the 10th<\/sup>\nstraight month in March, and prices have soared over the last year. Meanwhile,\nnonresidential spending, which includes offices, hotels, factories, and so on,\nhas dropped to its lowest level in two years. The recovery has not quite taken\nhold yet, as demand for commercial real estate remains light, and projects are\nstalled because of backlogs and rising prices for key materials.5<\/sup><\/p>\n\n\n\n Will\nthe Bulls or Bears Dominate in 2021?<\/strong> \u2013 The market has been very volatile for the past few\nmonths, and questions may arise, such as: Are we on the road to full economic recovery? If so,\nhow long will it take? As\nyou navigate through the ups and downs in the market, it\u2019s essential to be\nprepared for what\u2019s next. <\/p>\n\n\n\n In our\njust-released May Market Strategy Report, we take a look at the key factors that are influencing the economy\nand markets as the year continues to unfold. We look at whether the bulls or bears\nwill dominate in 2021 and we also focus on:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more, click on the link below to get your free report today! Residential market soars while commercial real estate stalls, automaker part shortage, Yellen signals rate hike<\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-9568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9568"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9568\/revisions"}],"predecessor-version":[{"id":10401,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9568\/revisions\/10401"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/pic100-1024x395.png\")
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