“Industry Perspectives” 3Q 2021
The stock market was essentially flat in the 3rd quarter with the S&P 500 rising just 0.58%; bond returns were slightly negative. The quarter started strong as corporate 2Q earnings reports pleased investors, by and large, with near-record numbers of reporting companies beating expectations, thus prompting positive earnings revisions. However, the market sold off hard in September as economic, political, and geopolitical tensions ramped up, impacting both stocks and bonds.
In this latest Industry Perspectives, we discuss:
- Inflationary fears have gripped the stock markets, which has driven interest rates back up.
- The Federal Reserve has signaled its willingness to soon taper monthly bond purchases before the end of the year.
- Congress continues to debate the trillion dollar infrastructure bills, causing the markets to react harshly to the uncertainty.
- We see the potential for higher equity prices in the near-term but lower overall returns next year compared to the past few abnormally high-return years.
We get to know the companies we invest in and learn how they run their business.
Top-Down & Bottom-Up
We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.
We construct our portfolios based on our own proprietary investment strategy.
Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.
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