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Columns, September 2020 |
October 2020

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Forté Capital’s Selected Statistics

Source: Bureau of Labor Statistics

Consumer Price Index

The Federal Reserve recently affirmed its commitment to a long-term inflation target of 2%, suggesting that there continues to be plenty of room to keep interest rates low and money markets flush with liquidity. The issue for markets will be the manner in which the Federal Reserve manages any change in this policy.

U.S. & World Equity Indexes 9/1/20 YTD Return S&P 500 3,459 9.85% Dow Jones Industrials 28,849 1.09% Nasdaq Composite 11,928 32.95% Shanghai Composite (China) 3,404 11.63% S&P BSE Sensex (India) 39,806 -5.25% Nikkei Stock Avg (Japan) 22,882 -3.27% CAC 40 (France) 5,028 -16.32% DAX (Germany) 13,228 -0.65% FTSE 100 (U.K.) 5,936 -21.26%
Selected Interest Rates 9/1/20 7/31/20 15-Year Mortgage 2.46% 2.51% 30-Year Mortgage 2.91% 2.99% 5-Year Treasury Bond 0.26% 0.23% 10-Year Treasury Bond 0.68% 0.55% 30-Year Treasury Bond 1.43% 1.20%
Key Economic Statistics Most Recent Prior Month National Producer Price Index 0.60% -0.20% Consumer Price Index 0.60% -0.40% Unemployment Rate 10.20% 4.40% ISM Manufacturing Index 56.00 41.50 ISM Services Index 58.10 52.50 Change in Non-farm Payroll Emp. 1,763,000 4,800,000 New York State Consumer Price Index - NY, NJ, CT 0.50% 0.10% Unemployment Rate 15.90% 15.60% Empire State Manufacturing Survey 3.70% 17.20%

U.S. Treasury Yield Curve

Treasury yields illustrate both the Federal Reserve’s accommodative stance and the markets’ comfort with long-term inflation expectations. This general level of rates will persist well into 2021, and perhaps beyond, depending upon the future course of COVID-19 and U.S. economic activity. Mortgage rates, not shown on this chart, are at or close to historically low levels, adding fuel to the real estate market broadly.

Equity Market Statistics Most Recent Prior Month Dow Jones Industrials 9/1/20 7/31/20 Dividend Yield 2.57% 2.63% Price/Earnings (12-Mth Trailing) 23.40 21.60 Price/Earnings (Projected) 23.52 23.66 S&P 500 Index 9/1/20 7/31/20 Dividend Yield 1.68% 1.68% Price/Earnings (12-Mth Trailing) 29.20 30.59 Price/Earnings (Projected) 26.74 25.47

The information herein was obtained from various sources believed to be accurate; however, Forté Capital does not guarantee its accuracy or completeness. This report was prepared for general information purposes only. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities, options, or futures contracts. Forté Capital’s Proprietary Market Risk Barometer is a summary of 30 indicators and is copyrighted by Forté Capital LLC. For further information, visit www.fortecapital.com, send a message to info@forte-capital.com, or call 866-586-8100 and ask for David W. Henion, CPA, or Larry H. Rabinowitz, CPA/PFS.

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