Weekly Investment Update

Markets continued their climb last week with the S&P 500 once again reaching all-time highs and now within striking distance of 4,000. For now, market leadership has shifted from the large technology-related companies to more cyclical businesses such as financials and energy. This can be seen within the performance of the three most-widely tracked US indices: S&P 500, Dow Jones Industrial Average, and the NASDAQ. While the technology sector represents nearly 50% of the NASDAQ, the sector comprises only 26% and 21% of the S&P 500 and Dow Jones, respectively. Furthermore, financial companies are relatively absent from the NASDAQ, but represent 12% and 15% of the S&P 500 and Dow Jones, respectively. Yields on US Treasury securities have been rising, which is typically seen as a positive for financial companies like banks which can profit from higher interest rates.

Year-to-Date Major Index Performance

Line graph depicting the Year-to-Date Major Index Performance, including SPDR S&P Financials ETF, SPDR Dow Jones Industrial Average ETF, SPDR S&P 500 ETF, and Invesco NASDAQ ETF from December 31, 2020 to March 11, 2021

The chart above reflects the price return for a $100 investment the various ETFs listed. Source: Bloomberg

Key Economic Releases This Week

Day Report Period Consensus Est. Previous
Tuesday, Mar. 16th Retail Sales (monthly rate) February -0.1% 5.3%
  Industrial Production (monthly rate) February 0.5% 0.9%
Wed., Mar. 17th Building Permits (annual rate) February 1.75 million 1.89 million
  Housing Starts (annual rate) February 1.56 million 1.58 million
Thursday, Mar. 18th Conf. Board Leading Economic Indicators February 0.4% 0.5%
Source: Bloomberg

Asset Class Returns

Category Representative Index YTD 2021 Full Year 2020
Global Equity MSCI All-Country World 4.6% 16.3%
US Large Cap Equity  S&P 500  5.3% 18.4%
US Small Cap Equity  Russell 2000 19.3% 20.0%
Foreign Developed Equity MSCI EAFE 3.7% 7.8%
Emerging Market Equity MSCI Emerging Markets 4.6% 18.3%
US High Yield Fixed Income ICE BofAML High Yield Bond 0.5% 6.2%
US Fixed Income Bloomberg Barclays US Aggregate Bond -3.4% 7.5%
Cash Equivalents ICE BofAML 0-3 Mo Deposit 0.0% 0.5%
Source: Morningstar as of March 15, 2021

Prices & Interest Rates

Representative Index Current Year-End 2020
S&P 500 3,942 3,749
Dow Jones Industrial Avg. 32,772 30,497
NASDAQ 12,934 12,886
Crude Oil (US WTI) $65.61 $48.52
Gold $1,720 $1,893
US Dollar 91.68 89.94
2 Year Treasury 0.14% 0.13%
10 Year Treasury 1.64% 0.93%
30 Year Treasury 2.40% 1.65%
Source: Bloomberg, US Treasury as of March 15, 2021

Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.   

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