(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents – 4/14/21
Back Home

Market Currents – 4/14/21

byadmin inChris Lai posted onApril 14, 2021
9
0
Market Currents – 4/14/21

 

  • Rally On. Slightly over a year ago, equity markets bottomed following a sharp 30% decline in only twenty-two days.  No market or sector was immune from the panic.  Fear and uncertainty ruled the day, and pandemic-driven shutdowns across the global economy took their toll in employment and economic output.  Despite the turmoil of the past year, it took a brief six months for the market to recapture its Covid-driven losses.  The speed of the market’s rebound caught many by surprise, and patient investors who were not shaken from the markets were rewarded.

 

  • Q1 Review. The first quarter of 2021 was largely dominated by rising bond yields, and a value-led equity market rally.  The S&P 500 rose 6% to finish the quarter at a record close.  Rather than being driven by a handful of large-cap tech stocks as in the past, the market rally is broadening out to include other areas such as value stocks and small caps, in anticipation of a sharp rebound in the economy.

 

  • Inflation Rising. We are noting a rise in inflation pressures in several parts of the economy.  Anecdotally, we are seeing a spike in lumber, used cars, and gasoline prices.  For now, the main culprit lies with the pandemic-induced supply-chain disruptions.  The shuttering of manufacturing plants and related supply operations during the pandemic, and the subsequent delay in getting them back online to meet the jump in demand, resulted in a supply-demand imbalance.  It remains to be seen whether the inflationary pressures are transitory in nature, but we believe the bulk of the disruptions should ease over the next six to twelve months.

 

  • Rising Treasury Yields. The 10-year US Treasury yield stands at 1.64% at time of writing.  This contrasts with the 0.3% low in March 2020, and 0.9% at the start of the year.  The size of the US stimulus, prospects for a healthy economic recovery, and rising inflation expectations all contributed to driving the move in higher rates.  From a portfolio management standpoint, we are keeping bond portfolio durations relatively short, and increasing our exposure to inflation-protected securities.

 

  • Stimulus Measures. Recently, the White House announced a multi-year, $2.25 trillion jobs and infrastructure plan, on top of the Administration’s $1.9 trillion Covid relief package that was passed in March.  The latest package was the third and largest of the Covid stimulus bills.  Led by government spending, the broadening rollout of vaccines, and continued fiscal and monetary policy support, the economy should continue to transition from hurting to healing over the course of the year.

 

  • Market Outlook. For now, we remain cautiously optimistic on the prospects of the market.  Economic data and sentiment surveys in the US continue to show strong improvements.  Household net worth is surging to a new record high, and for the first time in a long time, US consumers have both the means and the desire to start spending again.  We expect the rejuvenation in the economy to be reflected in corporate earnings as well, especially when the growth is viewed on a year-over-year perspective.  The relative pace of the rise in yields does cause some concerns, although at current levels, rates remain low enough to not pose a significant threat to stock prices.  We continue to monitor developments in this important market and how it will shape our investment thinking as we progress through the year.

 

Christopher Lai

Senior Portfolio Manager

04/14/2021

Share:

Previous

Market Currents - 3/11/21

Next

Market Currents - 5/18/21

Related Posts

Market Currents- 01/06/2015
January 6, 2015
Market Currents- 01/06/2015
No Comments
Market Currents- 01/03/2018
January 3, 2018
Market Currents- 01/03/2018
No Comments
Market Currents – 7/19/18
July 19, 2018
Market Currents – 7/19/18
No Comments

9 Comments

  1. online casino usa ok November 26th 2021. 5:27 am Reply

    […] casinos en linea o virtuales […]

  2. viagra 25mg cost December 8th 2021. 9:09 pm Reply

    […] sildenafil citrate tablets 100mg […]

  3. how to get cialis online December 10th 2021. 5:48 am Reply

    […] cialis cheap generic […]

  4. cialis 20mg price in canada December 17th 2021. 3:35 pm Reply

    […] cost of 20mg cialis in great britain […]

  5. cheap viagra 100 December 19th 2021. 8:59 am Reply

    […] viagra 25 mg precio […]

  6. online cialis January 15th 2022. 1:34 pm Reply

    […] cialis online […]

  7. where can you buy cheap viagra January 17th 2022. 8:47 am Reply

    […] cheap cialis canada […]

  8. sildenafil citrate tablets 50 mg January 20th 2022. 5:52 am Reply

    […] men viagra […]

  9. generic alternative to viagra January 25th 2022. 5:41 am Reply

    […] why is sildenafil so much cheaper tyhan viagra? […]

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.