As always, know what you own, do no overinvest, and stick with quality.
This month’s Chartbook differs from past efforts to assert an important point. Previously, I have finished Chartbooks with the above sentence, this month I start with it.
Last year’s market was unique. It left us with Growth stocks driving the stock markets while Value stocks underperformed and became relatively inexpensive. The COVID-19 tragedy resulted in massive government spending and massive growth in the Federal Deficit. The resulting stay at home mandate hammered the economy at the beginning of the year and then the vaccine gave us hope at year’s end. One thing that is for sure, 2021 will be different.
Today, uncertainty is still very much with us. However, while we still have a handful of large Growth stocks that continue to impress, we are pleased to see many more Value stocks look more attractive. While there is always something to worry about, over the long run history shows that stock markets have moved higher and higher. So what to do?
We believe an important way to be a successful investor is to have confidence in the future and to own investments that will be part of that future. Setbacks and market declines are inevitable but by believing in your portfolio, knowing what you own, not overinvesting, and sticking with quality you will be rewarded over the long run.
We continue to share a collection of charts that we hope you find relevant in understanding the current investment climate.
-Cliff Jarvis