Transcript:
Hello, everybody, welcome to Wednesday, the S&P 500 was down about .4% today. Really fascinating day though we had the NASDAQ down, you know more a little bit more than a percent, and the Dow is actually up. And so let me share my screen just so we can talk about kind of what I was talking about yesterday, and give you a little bit of a, refresher here. So I presented this yesterday, I’m not going to go over it all. Again, you might want to watch the video from yesterday, if you haven’t already. But what we saw today was some of the effects of the virus, starting to come under control, several big banks released their earnings, they were very good on average, and quite a bit higher than what was expected, which is exactly what’s happening here. Those were higher and better because the virus is starting to come down. And you’re seeing this activity inside the banks. And of course, if it’s happening in the banks, it might be happening in lots of different places.
And so then again, boom, we saw that inflation pressure possibly coming in, and the yields on bonds going up. And of course, growth stocks came down and the NASDAQ was down and what have you, value stocks went up, and that was referenced by the Dow, but our value stuff went up way higher than the Dow is, on average, our traditional model was up a half a percent today. And our ESG model is up about .3% today. So I mean, really good in a down day for the S&P and what I was talking about was, you know, if you’re in the growth area, you could get hurt as this stuff starts to happen as the virus gets under control, but also the broad market could get hurt too. So if you look at the Vanguard’s Total Stock Market Index, it was down today also down a quarter percent, again, because growth stocks make up the biggest component of the broad market. So when this falls, the broad market will underperform also. So anyway, that’s that’s kind of what we saw today.
Very fascinating. Exactly what I was talking about yesterday happened today. And so I don’t think it’s going to happen every day right now. But it will, in my opinion, be the major trend. Because when companies have huge earnings, surprises, that just gets a lot of attention. A lot of money goes in that direction. Of course, it’s not going into the growth stocks. And so if you keep seeing surprises, they’re all going to probably happen in the same kind of area, these Epicenter stocks, the stocks that were affected by what happened, last year around this time, exactly. So you’re now seeing this, recovery of those companies. And that recovery is happening faster than the analysts are expecting. And so really fascinating to see how this is going to play out, but a very good day for our portfolios today.
So one of the things we are doing now we’re starting to post other videos on our channel. We’re going to take some pieces from Go Live With Tom, different things like that, if you want to get notice of those. And you just want to look here, as you’re watching this video, you can just subscribe to the channel, you just push the subscribe button. And then there’s a little bell next to it, you can push that if you want to get notification of other pieces that we’re putting into the channel. You’ll also get notified of the live stream starting to so in case you want to watch that. So nonetheless, great to talk to you today. Look forward to seeing what’s gonna happen tomorrow. Thank you very much.