Market Commentary — November 15, 2021

Stocks sold off from record highs last week, as investors digested inflation data recording the highest inflation levels in nearly thirty years. The Consumer Price Index (CPI) climbed 0.9% in October, much higher than consensus estimates for 0.6%. The increase brought the YOY % level to 6.2%, the highest inflation since December of 1990 during the Gulf War. This led the S&P 500 to end its longest winning streak since 2017.

Leading the decline in the S&P 500 was the sharp fall of Tesla stock after CEO Elon Musk announced the sale of $5.7 billion worth of shares. Many sectors were boosted by the passage of the Biden Administration’s $1.2 trillion infrastructure bill in the House. And EV maker Rivian went public, marking the largest U.S. IPO since Facebook in 2012 and making it the largest public company with no sales.

While most market observers attribute the surge in inflation to ongoing supply chain pressures and pent-up consumer demand, the latest job numbers helped market sentiment. Weekly jobless claims hit a pre-pandemic era low of 267k.

In ETF news, approximately $200 million worth of assets has flown into Nuveen’s Growth Opportunities ETF (NUGO) since mid-October suggesting someone (likely Nuveen’s parent company TIAA-CREF) is moving money into the just-launched ETF from somewhere (their Lifecycle Lifestyle funds).

The SEC rejected VanEck’s spot bitcoin ETF filing. And Cannabis ETFs rallied this week on legalization hopes, as both the Dems and the Republicans are working on their own versions of federal cannabis reform. See CNBS’s portfolio manager Tim Seymour’s comments on developments in the article link below. Nice shirt Tim!

Hope everyone took the opportunity to honor our nation’s Veterans last week on Veteran’s Day. Inflation and supply chain issues should remain the hot topics next week as retail sales numbers and a slew of retail chain store earnings reveal how consumers are reacting.

Jane Edmondson
CEO and Co-Founder

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