Market Outlook & ETF Ideas For The Fourth Quarter

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  • (1:00) - Breaking Down The Recent Stock Market Price Action
  • (6:30) - Q4 Expectations: Should You Be Buying The Dips?
  • (10:00) - How Could The Fed Tapering Impact The Stock Market?
  • (15:10) - Will Small-Cap Stocks Outperform Going Forward?
  • (20:35) - Finding Trends With ETF Fund Flows

In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and best strategies for the fourth quarter of 2021.

September has been a tumultuous month for stocks. On Monday, the S&P 500 and the Nasdaq suffered their worst one-day declines since May on concerns surrounding the Chinese property developer Evergrande. Stocks are rebounding strongly today as those fears appear to have ebbed.

This comes after a record-breaking bull run for US stocks earlier this year. We may continue to encounter turbulence in the coming weeks on rising concerns about slowing economic growth, the Delta variant, and the possibility that the Fed may start tapering its asset purchases soon. What can investors expect from the fourth quarter of 2021?

Despite a record rally, stocks still look attractive compared to bonds thanks mainly to ultra-accommodative monetary policy.  While some investors are concerned about stretched valuations, the rally this year has been driven primarily by excellent earnings growth and most valuation metrics remain close to their levels at the beginning of the year.

As growth is expected to slow down in 2022, investors have started favoring stocks with more quality balance sheets and less volatile earnings, over the past few weeks. Matt likes strategies focused on dividend-paying stocks with a strong value bias. These can also provide diversification benefits to portfolios that have a lot of exposure to mega-cap tech stocks like Apple (AAPL Quick Quote AAPL - Free Report) and Microsoft (MSFT Quick Quote MSFT - Free Report).

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