Monthly Market Update:
Recap of March 2021
Quarter 1 of 2021 has come and gone like a ship stuck in the Suez Canal. Markets are finding their footing as the number of vaccinations continues to grow, the feds are sticking with low interest rates and investors are leery of rising inflation.
If this is your first time tuning in, I’m Eric Powell with RightPlan Financial and our young professional division, The Future Mill.
Let’s take a look at what the markets have been up to and what could be to come.
Q1 saw a new stimulus bill passed that boosted some sectors of the market, while others took a step back. The boost in revenue along with weakening restrictions from the virus have proven positive for the Dow and S&P indices, though others didn’t fare as well. With more stimulus money, investors have continued their concern of inflation, dragging down long-term treasury bonds, which were a safe haven during the Covid market downturn. Tech stocks have also seen a sell off from their early February high due to rising rate concerns.
Though the economic numbers are showing all the right signs, some economists are concerned with the new proposed tax plan. There are two phases, though only the first phase has been presented, which has to do with corporate tax and rebuilding US infrastructure. At this time, there are too many what ifs to justify a discussion, though we will be continuing to monitor the proposal and the impact it could have on portfolios.
Though short-term performance is the focus of the media and a key driver for emotional investing, long-term views and diversified portfolios are the tried-and-true method we continue to focus on.
For the March numbers, the S&P 500 index was +4.24%, Dow Jones Index was +6.62%, Nasdaq Composite +.41%, MSCI EAFE +2.3%, MSCI Emerging Markets -1.51%, Barclays US Aggregate Bond -1.25%, Barclays US Corporate High Yield -1.07% and Barclays Municipal +.6%