Opening Statement from the October 2021 Intelligent Investor (part 1)

Opening Statement from the October 2021 Intelligent Investor (part 1)

Originally published on October 6, 2021 (pre-market release)

Overview

The US Treasury 10-year yield soared over the past week which put significant downward pressure on the equities market, with the brunt of the impact on the richly valued Nasdaq.  Despite current weakness in the U.S. equities market, Q3 earnings are expected to come in strong.

While the pull back in equities is not surprising, there were no obvious signs that enabled investors to prepare for the downside. Although painful for those investors who are overweighed in the Nasdaq, his correction is quite healthy for the market given the blistering performance of the indexes up through the end of August 2021. 

Inflation data continues to rise around the world. In response bond yields have soared in anticipation of interest rate hikes.

Meanwhile, crude oil prices continue to rally due to widespread production shutdowns in the US in response to damage caused by Hurricane Ida. Crude prices...