Transcript:
Tom Vaughan:
Hello, everybody, welcome to Tuesday, the S&P 500 was up a grand total today of .02%. So kind of a flat day altogether for the S&P 500. But again, we saw some really good returns out of the small cap index, which was up a little bit over 1%. Today, the Russell 2000 index. So, there’s money to be made in these markets, is what’s been happening so far, this month, we’ve seen a lot of kind of flatness out of the big indexes, and some really robust movement into the kind of the small cap area and some of the others pieces. So, for example, our traditional model today was up, almost a half a percent, when the S&P was basically at zero. Our ESG model was up .35% today, so, if you have the money placed in the right places, and you really are looking kind of, you know, under the hood, so to speak at all the different things that are happening within the market, there are some places that are making money right now that are being reflected that well, in the major indexes as far as that goes.
We did see the 10 year Treasury yield, drop down some more, really kind of the lowest, it’s been really since maybe, March timeframe. And so that’s kind of interesting to see, you know, because that’s the big battle that’s happening with inflation and whatnot, too. But really, I think, the key issue here is just to kind of keep some positive thought process. And one of the things that I read today that I’ll share with you, I think it’s really interesting, gentleman by the name of Tommy Lee, and actually, he originally started showing up on CNBC as a money manager back in March of last year, and really was talking about how things were going to turn around. And of course, at that time, most of the other big money managers were saying just the opposite.
And he was right, obviously, things did very, very well. And he made a great call there. And then he’s now a contributor on CNBC, as well, doing his money management. So he put out a report, saying that he sees that that, the millennial generation that is going to be kind of pushing forward in terms of economic growth, is heading into their peak earning years. When you get to about the 20s, to your mid 50s, is when you’re spending more money than you would sometimes in other parts of your life. You’re getting an apartment, you’re furnishing that apartment, you’re getting vehicles or getting house forming a family, paying for college, paying for school, all these different things. And so you tend to get a lot of economic growth. And what this is, is really kind of an echo boom from the baby boomer section.
So according to his report, he says that the millennial will reach peak earnings in 2038. Okay, so 16 years from now, 17 years from now. And really, the thought process behind that is that, we would continue to see kind of economic growth, which would drive the stock market. His prediction is that we’d see at least a 400% gain on the S&P 500 by 2038. So, I think it’s important to be able to see some of these positive things that come out. Because again, day after day, I keep reading articles about how everything’s gonna fall apart, whether it’s economically or politically or stock market or what have you. So, again, negative information sells pretty well gets a lot of clicks, gets people to look. But positive information is really important to balance out, kind of what’s happening in as an investor, because we got to kind of hang in there a lot of times.
There are some times you got to watch out and maybe get out of the way, but most the times, we just need to hang in there, we need to be kind of aware of the long term possible game. So I thought that was really fascinating. I read a very similar book about the baby boomers, about 20 years ago, how they were going to drive things. And we did see some really fantastic markets, I think, coming out of that growth from that baby boomer group, and that, the 80s and the 90s. So this is kind of the echo generation that’s coming through now, as far as that goes.
So very fascinating, actually a pretty good day for us all together very pleased, you know, what’s what happened with the portfolios? We’re seeing a great mix of stocks starting to do well. It’s interesting, I’d say in the last two weeks, I’ve seen more and more where we see both growth and value doing well. And whereas before, for a big chunk of the year, it was either one or the other. We’re starting to see more and more blended days, which is a really good sign. And Cathie Wood came out and reiterated, her thought process, that she agrees with Tommy Lee about this millennial growth. And she talked a lot about the health of the market right now, in that we’re seeing a much more diverse group of stocks, that is starting to do well, which is what you kind of need to really get a launching pad to go forward. Last year was very narrow, and so that was the big criticism, and now we’re starting to see this kind of spreading out. So anyway, that’s what’s happening. Looking forward to see what’s gonna happen tomorrow and I’ll talk to you then. Thank you very much.