|Over the past year, used car prices have risen 30% on average. Car dealerships are reaching out to car owners to buy back their cars for more than they were bought for since there is low inventory. The pandemic and a global shortage of computer chips have pushed prices to record levels. Used vehicle price increases accounted for one-third of the large rise in inflation last month, according to the Labor Department. This is one of the rare times when your own car is worth more off the lot than on the lot.
Since last Friday’s close, equity markets have been on a strong rally. The S&P 500 and the Nasdaq both grew 2.4%, and the Dow led the way rising 2.7%. A stark contrast from last week with the Nasdaq being the only index in the green (and just slightly at that). This reflects an easing of fears on rising inflation and a hawkish fed. The overall message seems to be that investors are feeling more supportive of less supportive monetary policy backstopping the markets and the economy.
President Biden and a group of bipartisan senators have announced a deal on infrastructure spending after weeks of negotiations. This agreement focuses on roads, electrical grids, railways, bridges, and broadband internet. The cost of the deal would be $973 billion over five years, and $1.2 trillion if continued over 8 years. The White House says the plan will be paid for with unused coronavirus relief funds, unused unemployment relief funds, revenue collected from enhanced enforcement by the IRS, and other sources. It does not include what Biden calls “human infrastructure” like money for childcare and tax credits for families.
My family and I will be going on our trip that was postponed last year. I will be out of the office beginning tomorrow, Friday, June 25th, and be back in the office on Monday, July 19th. I will have limited access to my email and voicemails. If you are in need of immediate assistance, please call our office. Our Client Services team will continue to send out the weekly newsletters on my behalf.
Quarter end is around the corner, so please call our office at (888) 253-0288 or email Sunni@apriem.com to schedule an in-person or virtual review with your wealth manager.