Transcript:
Tom Vaughan:
Hello, everybody, welcome to Monday, the S&P 500 was up .27%. Today, and it was really kind of a unique day actually. Because in the past all year long every time the yield on the 10 year Treasury went up, we actually saw Canada reopening stocks not do very well. And we saw technology do well, we saw exactly the opposite today, you know, the interest rates came down, technology came down, which is strange, usually, and then the reopening strayed stocks really went up. And so the S&P was up .27, but we have like the pure value pieces in our portfolio. Today, we’re up 1.4 to 3.1%, I mean, a heck of a lot more, plus consumer discretionary, was way up, transportation was way up. And even banking, regional banking index that we use was up today 1.3%. And really, normally, again, we’ve seen banking go up whenever the interest rates went up, because banking knew better during a higher interest rate period.
Having said that, banks also do better in an economic recovery, they could do more loans, there’s more commerce happening and those types of things. So really, I think what’s happening is we’re starting to slowly see the focus, where I think it should be, which is on this reopening stock and the Epicentre Type Stocks that are out there that are going to recover nicely, hopefully, from this downturn that we had really starting last year with the pandemic. So one of the things that did happen, it’s always kind of fascinating to me is, we saw some news in New York City, about being able to reopen, restaurants and those types of things without limits on the 19th of May. And so all of a sudden, now, the reopening stocks are going crazy today, too. And everybody’s kind of ignoring interest rates and technology, and really focusing on reopening. So unfortunately, for better or worse, New York City is the center of the stock market universe to a large degree here in this country. And so the news that happens, there does seem to have some impact, we’ve seen seeing this happen. I think this about the third time I’ve talked about this, sothat may have had a little bit of an impact.
But nonetheless, you know, we’ve already seen all of these reopenings going on, definitely having lots of commerce happening. Their earnings, we’re still at over 86% of the S&P 500 companies that have reported so far have reported earnings that are higher than expectation. And so essentially, things are growing much faster than expected. And that’s a good thing, that usually means that the stock market hasn’t fully priced in that particular growth. And that’s what we’re looking for some more growth in those prices. And that’s what seems to be happening. So, all along, there’s all these people running around saying the markets gonna fall apart and all these things going to happen. Guess what, we just hit an all time high again, and again, with a lot of these different pieces.
So really, really, I think, a good time frame, all of the things that we talked about, really, at the end of last year are slowly but surely starting to happen with a pent up demand, low interest rates, the Federal Reserve saying they’re going to keep rates down, all that kind of stuff is happening. So very exciting. I think this is, hopefully just a continuation. If you look really closely over the last 10 trading days or so, you’ve seen this exact same scenario, kind of playing out where the reopening crates are slowly starting to pop up. But today was unique in the fact that the way the combination of yields on the treasuries and the tech and the reopening trade, so maybe that’s a harbinger for even better things to come, of things to happen. So I look forward to talking to you again tomorrow. Thank you very much.