While constructive on the market, Portfolio Manager Nick Schommer explains why it is crucial for investors to stay versatile during the economy’s volatile recovery.
- The third quarter saw a return of volatility to markets, driven by the rise of the COVID Delta variant, widening supply chain disruptions and the Federal Reserve's (Fed) plans to taper its asset purchases.
- Despite these challenges, we remain constructive on the market, as elevated savings rates and generally strong consumer balance sheets can help fuel growth as the Delta variant wanes and supply chains are repaired.
- Still, the processes of economic reopening and repairing supply chains could be uneven. Investors may do well to stay versatile and look beyond areas of the market that now appear crowded.