Markets Lower On Concerns Around Afghanistan and Fed taper

<p>The markets took a downward turn in response to US withdrawal from Afghanistan, and lackluster consumer spending.</p> <p>In today’s Thirty Capital market roundtable discussion, the team had different views on how Afghanistan will impact the markets going forward, and the prospect of tapering.</p> <p>Analyst Jay Saunders says the turmoil in Afghanistan could play out for some time. Analyst Jason Kelley said it’s really a watch-and-see time, noting there is an unwillingness on the part of politicians to step in and take action.</p> <h1>Tapering May Come In November</h1> <p>Some Fed members have indicated that tapering will come in Q4, but some analysts are doubtful, saying it will happen when it happens.</p> <p>“I’ll buy that the Fed’s going to start tapering when it starts tapering, and not before,” says Jay. “They’ll find lots of excuses to keep a lot of stimulus in place.”</p> <p>Jay notes that there is a lot of talk about the Fed cutting back on issuance of Treasuries, which could play well into a tapering by the Fed.</p> <p>“It will be beneficial to the market if the Treasury starts issuing a little bit less debt,'' Jay concludes.</p> <h1>Inflation Down Slightly, Very Low Consumer Spending</h1> <p>Inflation numbers are down slightly, although some prices including oil are up, while lumber is down.</p> <p>But the biggest shock came with Consumer Price Index (CPI) numbers, which are the lowest in a decade, revealing very low consumer sentiment.</p> <p>This week, retail sales figures will be released, and the team will be watching closely to see how these figures play out with low consumer sentiment, especially given that stimulus checks have played out.</p> <p>Meanwhile, the Producer Price Index (PPI) was a little higher than anticipated, noted Analyst Bryan Kern.</p> <h1>Eviction Moratorium Extended</h1> <p>Evictions won’t happen in the near future, with the extension of the eviction moratorium. This  will push back some of the pent-up flow of empty housing.</p> <p>The impact will, of course, be felt once th