In today\u2019s Steady\nInvestor, we dive into current news and key factors that we believe are\ncurrently impacting the market, such as:<\/p>\n\n\n\n
U.S. Households\nRemain in Strong Position, While Sentiment Sours \u2013 <\/strong>The U.S. Commerce Department reported this week that household\nincome rose by 1.1% in July, which marked the strongest pace of increase since\nstimulus checks went out in the first quarter. Government stimulus was still at\nwork in the July numbers \u2013 families started receiving the expanded child tax\ncredits by check or direct deposit, with payments that start at $250\/month but\ncan be much higher depending on income and family size. Earlier in the summer,\nfamilies seemed likely to go out and spend the new dollars, but growth in\nconsumer spending has slowed considerably as Delta cases pick up. Growth in\nconsumer spending in July was just 0.3% from June levels, which marked a\nconsiderable deceleration from the 1.1% growth posted from May to June.\nAccording to Oxford Economics, spending is expected to increase at an annual\nrate of 3.5% from July to September, which is less than half of what they\nestimated earlier in the summer. The upshot is that many American families are\ndoing what they did earlier in the pandemic \u2013 stashing away extra cash as\nsavings, which sets up the possibility of another spending surge once the\npandemic risk fades.1<\/sup><\/p>\n\n\n\n Looking to Retire Soon? Let\u2019s Help You Get Started!<\/a><\/strong><\/p>\n\n\n\n You\u2019ve worked hard to build a nest egg for retirement…but are your retirement assets working smart for you? To retire comfortably, it\u2019s important that you make thorough plans. That\u2019s why we\u2019re here to help!<\/p>\n\n\n\n In our latest retirement\nguide, we address some of the most important issues facing investors\napproaching retirement. We also cover:<\/p>\n\n\n\n This guide also provides a checklist of the most\nimportant financial, tax, and investment considerations for new retirees, with\ndetailed explanations to help you prepare for this new stage in your life. If\nyou have $500,000 or more to invest, get our free guide today!<\/p>\n\n\n\n Download Zacks Guide, Thinking of Retiring Soon? Here are 4 Things to Consider First<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n Aluminum Prices Surge\nPast Other Commodities \u2013 <\/strong>The co-CEO of Monster Beverages, Hilton\nSchlosberg, has been in the beverage business for a long time \u2013 and he has\nnever seen aluminum prices this high. Much like other commodities caught up in\nsupply chain entanglements \u2013 like copper and lumber \u2013 aluminum has been in high\ndemand as companies race to restock inventory and fill customer orders. The\nissue is not that there is a shortage of aluminum. It\u2019s that much of the metal\nis located in Asia, and U.S. and European buyers do not have a cost-effective,\nquick way to move the metal overseas. The containers used to ship aluminum\naround the world are in high demand and short supply, and freight costs and lag\ntimes are being prohibitive to doing business. These imbalances have led\naluminum forward prices to jump by over 30% this year, to approximately $2,650\nper metric ton. That\u2019s about 80% higher than prices were at the low point in\nMay 2020 and marks a 10-year high. The other wildcard is China, which in 2020\nbecame a net importer of aluminum, meaning that the U.S. and Europe are now\ncompeting with China as buyers. Problem is, China is geographically close to\nthe stockpiles.3<\/sup><\/p>\n\n\n\n How Continued\nCovid-19 Outbreaks Prolong Supply Chain Fixes \u2013 <\/strong>Issues with supply chains\nare a recurring theme in economic commentaries, largely because they are\ncritical to normalizing price pressures and ensuring predictable sales and\nmargins for corporations. Covid-19 outbreaks, particularly in Emerging Markets,\nare key to monitor because they can prolong the time needed for supply chains\nto run smoothly. A case-in-point is Malaysia, which is an underappreciated link\nto the global semiconductor supply chain but is also experiencing a spike in\nCovid-19 cases and hospitalizations. Malaysia is a critical country for\nassembling and testing semiconductors, and factory closures there can result in\nadditional delays. China is also grappling with a new wave of infections which\nhave led to lockdowns across the country, causing a key construction and\nservice sector index to fall into contractionary territory. China\u2019s official\nmanufacturing PMI has also declined to its lowest level in 18 months.4<\/sup><\/p>\n\n\n\n How Expanded\nUnemployment Benefits Affected Hiring \u2013 <\/strong>There has been plenty of debate\nover whether expanded unemployment benefits inhibited hiring in states that continue\nto provide them (though the expanded benefits are set to end next week). A\nrecent analysis by the Wall Street\nJournal <\/em>and economists found that nonfarm payrolls rose 1.33% from April to\nJuly in the 25 states that ended the unemployment insurance benefits while\nrising 1.37% in the 25 states that kept them on. In other words, no difference\nin hiring trends, according to this analysis. Goldman Sachs took a different\napproach to the data and arrived at a different conclusion. The investment bank\nsays that if all states had ended the benefits at the same time, July would\nhave seen 400,000 more jobs than it otherwise did. Goldman believes the ending\nof the expanded benefits next month will lead to 1.5 million job gains by the\nend of the year.5<\/sup><\/p>\n\n\n\n Planning to Retire Soon? Here are 4 Steps to\nConsider First<\/strong> \u2013 If you\u2019ve been thinking about retiring, but\nare hesitant or do not know where to start, here are some steps to consider! To\nguide you through this new phase, we\u2019ve created our new guide to help you\nreview your financial situation so you can make any adjustments necessary to\nkeep your plans and lifestyle on track. <\/p>\n\n\n\n
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