August 2026 | A Strong Economy
Good afternoon from your team at Perennial Wealth Advisors! With kids heading back to school, summer is wrapping up for many, though the heat doesn’t seem ready to call it quits. Below, you’ll find a quick market update from yours truly. Keep in mind that what you read here is an abbreviated version of the newsletters sent to our clients. If you have any questions or would like to speak with us directly, please don’t hesitate to reach out via the “Contact” page on our website.
MARKET UPDATE
Each week I read WisdomTree’s weekly market commentary by Jeremy Siegel. Mr. Siegel is an American economist and Professor Emeritus of Finance at Wharton School of the University of Pennsylvania. Among many other things, he’s known for authoring the investment classic, Stocks for the Long Run. I’ve found that reading his commentaries helps me stay up to date on certain market themes and indicators that, in all honesty, I would not notice on my own. Given I (or our firm) do not believe market timing to be possible on a consistent/repeatable basis, much of what I find in these newsletters doesn’t meaningfully change how I invest. However, I’ve found Mr. Siegel’s wisdom to be quite timely and preparatory in nature for many of the conversations I have with our clients. Last week’s commentary contained a statement that I want to touch on.
“The labor report may have surprised investors, but beneath the headline, the broader story remains one of an economy that continues to adapt, innovate, and demonstrate remarkable resilience.”
Despite the war in the Middle East, inflationary pressures, and a small slowdown in job growth, the market continues to show strength. I’ve mentioned this before, but there seems to be a theme regarding the implementation of AI: instead of replacing workers like many feared, AI seems to be helping workers and companies to become more productive. Earnings are very strong and corporate finances seem healthy. There’s truly no way to tell when this market will run out of a steam, but for the time being things look good. In the words of Mr. Siegel himself from this week’s commentary:
“The combination remains favorable for equities: earnings are exceptional, oil is manageable, inflation is gradually improving and economic growth, while moderating, is not collapsing.”
As always, thanks for reading. If you have any questions, please don’t hesitate to reach out.
Sincerely,
Brock Hedgecoke, CFP®
Financial Advisor