Transcript:
Tom Vaughan:
Hello, everybody, welcome to Tuesday, the S&P 500 was down just a little bit today, .05%. But the big thing about today was just kind of the pattern. And this is what I think is the most common pattern we’ve seen, a day exactly like today, over the last three months. So what happens today, we see interest rates come up a little bit, some fear of inflation. We see the price of oil come up, because there’s some heating up potentially coming into the energy market, as things reopen. There’s some talk about Iran not being back online as quickly also. So those things kind of come along, create a little bit of inflationary pressure. And then you have this scenario where small caps really do well, they were up 1.1%, today, even though the s&p 500 was down.
And so we’ve kind of just designed the portfolios around this particular type of day. And if you go in and look, you’ll see that today was a really good day for us, even though the S&P 500 was down, which I think is pretty important. So you really want to be kind of in that energy and materials and consumer discretionary, financials and etc, these particular areas, because what’s going to happen is that they’re going to kind of suck the oxygen out of the market in terms of the other areas. So, when earnings come through for these areas, and they’re so spectacular, which they have been, especially over the last three months, and I think that’s going to continue as things continue to reopen, it just makes that relative measure compared to say, the tech stocks or the advanced healthcare stocks and those types of things, which are still doing well, but it takes some of the luster off of those, when this other areas is starting to kind of gather some of the momentum that they’re doing. Now, again, that might not last forever, but that’s what’s going on right now, so I think that’s really important.
There is one area that is now starting to make some moves, that really wasn’t before. So we don’t have a tremendous amount of international exposure inside the portfolio, because they haven’t been doing well, we just they haven’t. But if you look at the last 30 days, you’ll see very good results that have lots of European countries, in Europe as a whole; Latin America as a whole. Canada is doing quite well, and one of the reasons is kind of like going back in time. We’re at nearly 60% of the 12 years and above population has had at least one shot of the vaccine, but these other areas are not at all, actually. And so we’re seeing a situation where they’re starting to ramp up their vaccine delivery, and again the expectation would be that they’re reopening stocks would start to do well. And so we are we’re seeing some things really move in those areas now, and it’s sort of like going back in time, like going back three or four months here in the US. And so we’re that’s something I’ve been watching very closely, digging through all the different charts and such to. So there’s some interesting plays there.
We’re not seeing that big gains in the Asia Pacific Rim, per se, which is interesting, even though they’ve done really well with the with the virus. I think you know, that there’s some other things that play there as far as that goes. But just something to watch for, and something I think that’s important, but really love today, love this pattern. It’s a pattern, I expect to see more and more of. I think, today’s June 1, so we’re heading into the summer here, officially, and I think that’s going to be very explosive. Lots of people are going to get out and do things that still aren’t getting out even now. And we’re going to see a continuation of that all the way through the end of the year. I think this could be a fantastic year for the stock market. We’ll have to see how things play out. But today’s pattern is something to focus on, because I think we’re gonna see more and more of that. And we have seen that the most so far, in the last three months or so. So, anyway, good day today for us. Very excited. Look forward to talking to you tomorrow. Thank you.