Our quarterly market and economic outlook video is available below! In this video:
We take a look at last quarter:
Despite some uncertainty about the future and the effect of new political actions, equities delivered a solid performance last quarter. Overall, we realized better returns in "cyclical" industries like consumer discretionary goods, industrials, manufacturing, and real estate along with smaller companies. Sectors that are characterized by high growth, like tech, had some challenges last quarter.
We answer some key questions right now:
How will current government policy affect the markets?
What do tax hikes mean for stocks?
What can we learn from history?
We talk about our outlook for the months ahead:
What lies ahead? A popular survey of economists suggests that the economy continues to pick up steam and could grow ~7% this quarter.[1] However, there are many variables baked into those projections: vaccination timelines, consumer spending, new government regulations, and business expectations. Overall, I'm optimistic about where the economy and markets will go this quarter. Our team is also keeping a close eye on market conditions, as a change in re-opening progress could drive sudden changes.
Please click on the image below to enjoy the video.
[1] https://www.wsj.com/graphics/econsurvey (March 2021) Archive link