Transcript:
Tom Vaughan:
Hello everybody, Welcome to Monday. The S&P 500 was up about .2% today. But the big story was the NASDAQ today was up almost 1%, even though the Dow is down and the Russell 2000, the Small Cap index was down also. Today was about technology, and all the things that are on the NASDAQ, as far as that goes. Actually, you can see, well, if you look at kind of what was in our portfolios that did well, today.
The Clean Energy piece was up 4.3% today, which is a really big day. We saw cybersecurity do well, software do well, innovative technology do well, genomics all beat the market by quite a bit today. And really, if you think about it, those are the things that last year around this time we were talking about also. And so we’re really seeing a resurgence of that kind of stocks that did well, last year doing well, right now. If you go back to the middle of February, there was a big sell off and clean energy and genomics and innovative technology and all these different things, and really what we saw at the same time was kind of that cryptocurrency rise. And so my personal opinion is, that people that were kind of buying these clean energy type things and cryptocurrency took over, and really they took off, and we talked about this last week.
But this is continuing, and it’s a pretty big deal. And I think it might continue to develop in the same way, where we start to see some of the pieces that did well last year, continue to do well again this year, as we’ve seen since about the middle of of May. And one reason is because for example, Bitcoin is down about 48% from its high, and a lot of times, people get excited about things, they get in things, and it’s the first time they buy, and if it works, they’ll they’ll be happy with it, and they’re willing to give us some room for falling apart once in a while, but when it doesn’t work, and people lose a bunch of money, they might not go back. And so even if cryptocurrencies and Bitcoin starts to do well, we might not see that money going back, because especially since last year, the same group did quite well with clean energy and innovative technology and cybersecurity and all those things did fantastic last year. So they made money, and then they left, and they lost money, and now they’re coming back to making money again, they’re all up again since the middle of May.
So, I do think it’s important. Right now we have kind of the value side of the portfolio, which did poorly today, but we have growth side today that did fantastic. And then we have this really big chunk of the overall stock market, with the total stock market index and the S&P 500, or the ESG equivalent for our ESG portfolio, for those two pieces. That formula seems to be working. Something we’ve been making adjustments to over the last three weeks. And really, maybe we’re starting to see a trend here, where the stocks that did well last year, are starting to do well again this year.
I think it’s very fascinating. I really haven’t seen something like this before, where something did really well, and it comes back around after falling apart for a while. But this are unusual times, there’s no doubt about that, which makes it interesting, I suppose, so, anyway. Look forward to seeing you tomorrow. Feel free if you’d like I’ve been asked several times about whether it’s okay to share the video, and feel free to share the video with friends and relatives and co-workers. Im a big believer in Investor Education, helps people to increase their overall net worth, and so maybe that’ll help your friends and relatives and what have you to so look forward to talking to you tomorrow. Thank you very much.