Wade's Weekly Market Update

Good Afternoon,

While the mid-term voting has passed, some results are still unknown.  It appears the Republican party will now control the House, but it won’t be the Red Wave many had anticipated.  History tells us that the party in the White House normally loses seats in Congress during the mid-terms, and 2022 is likely to follow suit.  In general, markets like gridlock in DC and traditionally prefer more conservative policies of smaller government, lower taxes, and less regulation for businesses.  We shall see if the final mid-term outcomes provide momentum to the current rally off the lows of mid-October, or if we can expect more selling pressure for stocks. 

More importantly for investors, the focus remains on inflation and the economic impact of rising interest rates.  Corporate earnings for Q3 remain solid overall, but several companies have missed their estimates and the stock prices were punished quickly.  An example is Walt Disney Co., a Dow Jones Industrial Index component, down nearly 13% as I write this update.  Tomorrow we get important CPI data for October which should give us reading on inflation and whether we have turned the corner in that battle. It will be a market moving number, either way.

Former President Trump hit the campaign trail hard for some of his chosen political supporters. Preliminary results are mixed in the races he worked to influence. Earlier yesterday, Trump told the streaming service NewsNation that he was ready to accept credit for Republican wins, but not blame for their defeats. “Well, I think if they win, I should get all the credit,” he said. “And if they lose, I should not be blamed at all, OK. But it’ll probably be just the opposite.” When it comes to Trump quotes, nobody beats the former President.  He’s still got it!

Please visit our website at www.canfg.com or the link below for the last Market Update from Commonwealth Financial Network® – the broker/dealer that supports us in helping you manage your financial life.

http://www.commonwealth.com/RepSiteContent/weekly_comm/commentary_redirect.htm

As always, if you would like to discuss this or anything regarding current market conditions or your portfolio, feel free to contact me at any time.

Enjoy your weekend and go Bills!

Wade

Wade A. Sarkis, CFP®, AIF®
Managing Partner
Canandaigua Financial Group
45 Ontario Street
Canandaigua, NY 14424

(585) 396-2720

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