Welcome back to the Monthly Market Wrap from YCharts, where we break down the most important trends for advisors and their clients in this monthly market review.
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Regular gas prices topped $4 per gallon for the first time since October 2022.The higher gas prices resulted from a surge in crude oil prices. WTI crude oil briefly reached $90 per barrel in September–the first time since November 2022–while the price of Brent surged 7.7% to $94.01. Mortgage rates reached 20-year highs last month and pushed even higher in September. The 30-year mortgage rate surpassed 7% for the first time since April 2002.
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Off the YCharts! Dollar-Cost Averaging NVIDIA
NVIDIA (NVDA) is the best-performing stock YTD in the S&P 500 and NASDAQ. The chipmaker giant is also the second-best performer across the Russell 1000 in 2023.
Last month, we highlighted the growth of a $10,000 investment into NVIDIA from its IPO through August 2023. What would have happened if you used dollar-cost averaging instead?
If you contributed $100 monthly to NVIDIA since its IPO, your balance would be a little over $3.9 million on a total contribution of $29,700. That balance would be close to $10 million if the monthly contribution increased to $250 ($74,250 total).
Though lump-sum investing in NVIDIA at its IPO would have generated a greater overall return, simply adopting the “set-it-and-forget-it” method of monthly dollar-cost averaging still produced a notable result while eliminating the worry about timing the market.
YoY inflation rose for a second straight month, from 3.18% in July to 3.67% in August. Conversely, Core Inflation fell to 4.35% in August, marking the fifth consecutive monthly decline. The US Consumer Price Index logged a monthly increase of 0.63% in August, its most prominent in the last 14 months. US Personal Spending was up 0.45% MoM. The Federal Reserve kept the benchmark Target Federal Funds Rate unchanged at 5.50% during its recent September 20th meeting.
The price of Gold fell 3.7% in September, from $1,942.30 down to $1,870.50. WTI oil per barrel briefly reached $90 in September, ending the month at $89.68, an increase of 7.3%. Brent rose 7.7% in September to $94.01 per barrel. As a result, the average price of regular gas also eclipsed $4.00 per gallon in mid-September, settling at $3.96 as of September 25th.
The prices of Bitcoin and Ethereum ended September down slightly MoM. Bitcoin slipped 1.4% to $26,917.20, and Ethereum fell 2.2% to $1,667.99. Crypto assets gave back some of their year-long gains in Q3; Bitcoin ended Q3 down 11.7% and Ethereum 10% lower. Bitcoin is up 61.7% yearly, and Ethereum is 38.8% higher.