Transcript
Hello, everybody, welcome to Friday, the S&P 500 was up 1.95%. Today, another green shirt day, we started off the green shirt day on Monday on Monday, and we just had all this craziness. But today was so different than Monday. First of all, value stocks, energy stocks were the huge winners today. On Monday, it was really growth stocks. And actually all the way through the rest of the week, it has been value stocks that have been winning, I do think that has finally turned over. And that has become the area. Energy, of course, has been the big winner, really all week long. And we saw today, again, our energy peace was 3.7%, we added some more energy to our, our stock portion of our model as far as that goes. And so on a theme basis, I think what’s going to be happening here going forward, is it really has everything to do with this recovery.
As as the market starts to the economy starts to recover, we’re gonna see higher and higher interest rates. And so that’s going to cause some problems for the markets, I do think that’s eventually going to work its way out, we did see a lot of volatility today because of that. But what happens eventually, is that that translates to higher earnings. So obviously, you know, everybody’s getting back to back to work, and there’s more money to spend, we’ve got this pent up demand and what have you, and, but the companies that are going to benefit the most are in this value category, they’ve cut down on their expenses. And when that revenue starts to come, I think we’ll see some pretty big profits out of there. And then also those stocks are so far down, you know, that the multiples times earnings or make more sense, you know, we got so stretched and innovative technology and clean air energy and, and genomics and those types of things. And I still think those have a place, but they’re selling off and basically settling back down, which is you know why I had all those stop losses in there.
So, value stocks, energy stocks, financials, which did well again today. And then I have two pieces of inverse, which didn’t do well today. But you know, we bought the S&P 500 inverse a while ago, we’re still up on that, even after today. So I think that this market is still trying to find it’s direction. And if you look at the three indexes, you know, the NASDAQ’s down quite a bit, it’s got a lot of overhead resistance, it’s going to be hard for that to come ripping right back. And so you know, we’d have to be careful here is this just a temporary situation where it comes down, and then you know, eventually comes back Are we going to see continued erosion of the gains that were made, you know, over the last 12 months, especially in the NASDAQ category.
So, you know, we’re sitting fine, we didn’t do as well today as we would have without the inverses we did better than we did yesterday because of the inverses. So I’m okay with where we are right now, until we start to see some, you know, concrete direction, today was a really good day, you know, we saw a lot of small caps do well, which just generally means people are feeling aggressive and confident when you see small caps moving like that. So that’s, that’s a good thing, too. So, really fascinating timeframe for the market. I think things work out quite well here. But we just need to see some you know, more clarity and direction.
I do believe that the growth stock run has really kind of, you know, taken a backseat now to what we’ll probably see is this value and recovery and energy run that’s going to come from from this, you know, basically from the vaccine and from the virus getting back under control and people getting back out to do things. So, that’s what’s happening this week. Really, really crazy week all together. And, you know, I want to thank you for listening and I look forward to talking to you on Monday. Thank you.