Transcript
Hello everybody, welcome to Monday, the first trading day of 2021. Unfortunately, the S&P 500 was down 1.48%. Today, almost a redshirt day, but not quite. One of the things to remember about a January that follows a really good year, like 2020 was, is that a lot of people take their profits in January, instead of taking them at the end of the year. And we see a lot of volatility coming through from those types of things on a normal basis.
Well, obviously, this week, we’ve got a couple of other things happening with the runoff in Georgia, and the implications that that would have for the stock market, as well as the certification of the Electoral College on the sixth of January. So lots of drama happening, lots of things playing out. We’ve talked about what could happen in the Senate. But I think the key things to understand here is really kind of some of the more major momentum pieces that are happening. So for example, if you look back, according to Marketwatch article that just read today, if you look back to World War Two, and you look for years, where at least 10% gain on the S&P 500 in the last two months of the year. So last year, we had a 14% gain, all of those situations where you had that kind of gain in November, December, led to a January, that was up and not down, and led to a year that was up, and not down every time. And matter of fact, the average year in those timeframes was up 18% on the S&P 500, according to this article, which is a really good return last year was great, and it was up 16%.
So that’s a big component of momentum that we need to keep our focus on as we go through this volatility and dealing with you know, what’s going to happen politically. Also, the other area that’s very fascinating, although today, the S&P 500 was down 1.48%. The five Clean Energy pieces, we’ve just added two more today, but the five Clean Energy pieces we have in our portfolios are up .4%, all the way up to 2.1%. That’s pretty good on a day when the S&P is down that much. And that’s the other big trend.
Clean Energy is going to do well no matter what happens in Georgia. And I like that it could do better if you know that. Democrats happen to capture the Senate. There’s other issues that might, you know, be on the other side of that with higher possible corporate taxes and such too. But looking at Clean Energy, it’s also a global play. It’s not just here, it’s all the countries around the world are trying to get to a spot where they have energy independence.
So really good, perfect. The vast majority of our holdings did better on the S&P 500 today, which was great, so. Not too concerned about what’s happening today. This is not an unusual scenario. Oftentimes, this lasts for a few weeks, or we can see some volatility. So let’s see how this plays out. And I look forward to talking to you tomorrow. Thank you very much.