In the recently released Q1 2021 Investment Insight newsletter, we commented that no changes were being made to the asset allocations being utilized across client portfolios.
Hitting on All Cylinders
With the recent one-year anniversary of the equity market indices’ pandemic driven lows, it seems appropriate to review what has transpired since that momentous event.
Standard & Poor’s 500 (S&P 500) Index’s first quarter 2021 performance of 5.8% has contributed to the index being up 19% from its pre-pandemic peak. This is the fourth consecutive quarter of positive performance for U.S.
The Worst Is Behind Us
Bond markets posted a decline of 3.4% this quarter – their worst return since 1981, as the 10-year U.S. Treasury climbed to a 1.7% yield from 0.9% at year-end.
What a year it was!
Looking back over this past year seems as if one was in a dream. 2020 started where 2019 left off as equity markets continued their advance.
Fixed income returns for the quarter were positive as corporate bonds excelled. Shorter duration Treasuries remain glued to the floor on the expectation it will be several years before the Federal Open Market Committee attempts to raise the federal funds rate.
Two Steps Forward
While there are many adjectives that could be used to describe the experience for investors in 2020, one that is surely appropriate is breathtaking.
Head in the Clouds
We hear a lot of derision when the stock market is used as an economic indicator. The skepticism is understandable, and a lot of times may be warranted.
Sticking the Landing
It is somewhat unsurprising the humble Midwest town of Des Moines, Iowa, is a hotbed for gymnastics, having been the development and training ground for some of the sport’s top athletes.
The Road to Recovery
With the release of the final estimate of second quarter GDP, the severity of the pandemic-induced lockdown of the U.S. economy became quantifiably manifest.