Transcript:
Hello, everybody, welcome to Monday, the S&P 500 was down about .02% today. But actually, across the board, most of the indexes, the Dow, the NASDAQ, the Russell 2000. Were all down today, actually. But luckily for us, the pieces in our portfolios did quite well. Today, we have two main portfolios, our environmental, social and governance portfolio, and our traditional portfolios. Each one of them has eight stock pieces in each model. And in both cases, they had six that were positive or breakeven today, on both sides. So very good. I do think and we saw this starting on Friday, I do think money starting to now move into this kind of Epicenter stock, had a great run up for a while, and it’s been settling down for a few weeks. And so I think that’s turning around.
Now we’re starting to see some of this, I feel super optimistic about what’s coming at us in terms of this reopening. Back in the fourth quarter, 80% of the companies that reported earnings beat their earnings estimates, and we ended up with a phenomenal stock market run in that quarter. This week, coming up here, we are just starting our earnings, you know, releases for the second quarter, banks are supposed to be releasing earnings, our banking index was up, over a percent today, we saw some really good gains that a mid cap value categories and such to tomorrow, they’re gonna release the consumer price index. So we’ll see what that looks like in terms of possible inflationary pressure that’s coming. So, again, when inflation comes and the threat of inflation comes, it’s no mistake, that the producer price index, which was up a percent, which is a lot. And now sudden, we’re seeing these value stocks that we’re invested in start to do better and actually make money even in down markets. So that’s the hope that’s the whole design of the portfolio is that, you know, things are going to reopen.
Chairman Powell of the head of the Federal Reserve Board had a pretty good interview on 60 minutes if you get to see it. And he talked about kind of the potential for this, really fast growth that’s coming, they’re expecting the gross domestic product for the year to be at six to 7%, which is a huge number. We haven’t seen that here in the US and really, for 30, 40 years. So really fantastic potential growth, which of course, put some pressure on inflation rates, which of course then should benefit the types of portfolio that we have. We also saw pretty good gains today out of the inverse positions on the bond market side. So today was a great example of what I’m looking for. And I think, again, it’s this anticipation for tomorrow’s report for the CPI that probably will come out higher than expected, just like everything else has. So really, really fascinating to see where this goes. And again, if you get a chance, watch that interview.
Again, I want to thank everybody who did come to Go Live With Tom. It’s been very well watched. It’s been over 120 views. If you still want to watch it, it is on the channel. And I look forward to seeing you next Friday. But let’s see what happens with tomorrow’s report for the CPI. Talk to you then. Thank you.