Gridlock in the Supply Chain

While the world has begun to recover from the economic disruption of the COVID-19 pandemic, the delayed reaction has been felt in the supply chain. Industrial shutdowns around the world slowed production to a relative crawl, leaving many businesses struggling to meet consumer
demands, both during lock-downs and since.¹

Challenges continue, even as manufacturing picks up, with worker shortages and a fight to locate the materials needed for production complicating the struggle. President Biden worked an agreement with the port of Los Angeles in recent weeks to operate 24 hours a day, which has helped reduce the number of container ships offshore to 58 from a peak of 73.²

What does this mean for American consumers? For one, some items that are normally manufactured overseas may be harder to find in stock for the next few months. While that means some household necessities, that extends to items like consumer electronics, toys, and other items that make up a large portion of our holiday purchases.

Yes, we all complain about how the holidays seem to come earlier every year, but in this case, it’s a good thing to bear in mind. If you can, it’s a good idea to prepare for the holidays early. In addition, if you have any concerns about the supply chain crisis concerning your financial strategy, I’d welcome a chance to answer your questions.

Will Fed Chair Powell Get a Second Term?

Financial markets tend to function best when they have clear, strong leadership. When there’s concern about who’s the boss, markets can struggle.

Jerome Powell’s first term as Fed Chair ends in February 2022. Until the past few weeks, Wall Street overwhelmingly believed he would be nominated to a second term by President Biden.¹

But Powell’s prospect for being renominated appears less certain than ever. During an appearance by Powell before the Senate Banking Committee in September, a prominent committee member stated that she would not support his nomination. Other senators have voiced concerns, but this was the first time that a key senator declared opposition.²

As the budget, debt ceiling and infrastructure debates continue in D.C., it’s clear that everything is on the negotiating table, including Powell’s future.

Biden is not obligated to nominate Powell, and for now, Powell appears to enjoy bipartisan support in the Senate for a second term. But if resistance increases and throws a second term into doubt, it could have an unsettling impact on the markets.^1,2

We’re keeping an eye on what’s going on at the Fed—like we keep an eye on all events that could have an influence on the financial markets. We will keep you posted if anything unfolds that may cause us to reconsider certain strategies.

Ready for Medicare Open Enrollment?

Medicare’s annual open enrollment period begins October 15 and ends December 7. During this time, current Medicare beneficiaries have the option to adjust their coverage for the coming year. Any changes to your plan will go into effect on January 1, 2022.¹

This is an opportunity to reassess your current coverage and identify potential areas for improvement. Maybe you’ve recently changed medication, find yourself underutilizing coverage, or are in need of additional benefits.

Before open enrollment begins, you’ll receive a report outlining your current coverage. Review your elections carefully, especially if you haven’t updated coverage in the last few years. Medicare offers a Plan Finder tool to help compare other offerings if you’re considering making a switch.

Your health insurance coverage in retirement should work to protect your financial wellbeing. I’m happy to help navigate new opportunities or plan changes during this upcoming open enrollment period. Feel free to reach out with any questions, or to schedule a meeting to talk.

Midyear Outlook 2021 Webinar

If you were unable to attend our Midyear Outlook 2021 webinar, we welcome you now to view it. If you have any questions, we invite you to contact us. All of our knowledgeable advisors are here to assist you and answer all your your questions.

AQuest Wealth Strategies’ Dr. Jason Van Duyn delivers market insights on what we can expect in the economy, policy, stocks, and bonds for the rest of 2021.

Will the IPO Market Heat Up?

If the stock market outlook brightens, there are expectations for a bumper crop of initial public offerings to make their debuts over the next several weeks.

Somewhere between 90 to 110 IPOs are preparing to come public by the end of the year, which would make 2021 the biggest year for total capital raised since 2000.¹

But a sluggish stock market may disrupt the best-laid plans. The Standard & Poor’s 500 index lost nearly 5 percent in September—snapping its seven-month winning streak.²

Companies attempt to make a splash with their IPO, and in the past, some have opted to postpone their public listing if they believe it will meet a lukewarm reception from investors.

The primary objective of an IPO is to raise money to operate the business. Going public also can increase a company’s public profile, which might help boost sales. But there are several disadvantages, including the fact that an IPO is expensive, and the new status requires additional costs unrelated to running the business.³

If you have your eye on an IPO, please reach out. One of our professionals may be able to help you find additional research on the company.