Transcript:
Tom Vaughan:
Hello, everybody, welcome to Monday. The S&P 500 was up 1% today, and what was really spectacular about today was just how much was up. Almost every index was up, oil was up the interest rates on the treasuries went down, which means the price went up. Bitcoin and cryptocurrencies went up, it was a pretty amazing day, actually. That’s a little bit rare to see so many pieces going up, especially fairly strongly, like we saw today, which is good, really, because the last couple of weeks have been kind of soft, but the money’s coming back in. I talked about on Friday, when you look at those leading economic indicators, and they’re going up, and not down, and the markets coming down, that really is often a time to buy, and obviously, that seems to be what what’s happening today to a large degree.
But there is something interesting happening right now that I want to share with you. And we’ll see what happens with this. But let me share my screen. We’ve talked about this before, we call this the Nine Boxes, this is through Morningstar. And again, you got you know, large, mid and small cap stocks, value stocks, you know, companies considered low cost versus their earnings, growth stocks, considered fast growing companies that might be more expensive, and then core just really are in between. So I’m showing you here right now is the last three months. And so you can see, growth has been underperforming value by quite a bit. If we look at the last one month, we can see that same thing here with growth kind of underperforming there. But look at the last one week, and you can see, really a flip in total, where growth has outperformed value. Now, one week isn’t enough time for an overall trend to be in place, but it is something to watch for. We have seen a tremendous amount of drop off on the growth side. And there’s some bottom fishing coming in, is that going to be enough to turn it around? We’ve had several false moves, where it kind of came in and then fell apart again.
But one thing that’s interesting about today is this, this is fairly unusual, all green. Now, again, growth did better. And matter of fact, the big winning area here is the stuff that drives the indexes the most. And these are the big companies you’re familiar with. This is Apple and Google and Facebook and Tesla and what have you, obviously had a good day today, some bottom fishing coming in buying some of those particular stocks. But you said you see that growth, still out did value, but there was money made in all of the different categories, which is really again, not that common. So you don’t have to watch out what happens here. Now we still have kind of both in our portfolios, we still have the growth pieces from the in the taxable accounts, that basically, we’ve held on to because they have high capital gains. And then we have some of the value stuff, the reopening stocks and what have you really in our IRA type of accounts again, because, that was an easy area to make that change when that rotation happened back in the middle of February.
It will be interesting to see, there’s a lot of really powerful names inside of some of these, the big stocks that were talking about, didn’t fall that much. But a lot of small growth stocks really fell hard. And some of them are starting to be repurchased again, and we’ll see, kind of those are what we call the ARK investment stocks, a lot of the innovative technology and genomics and what have you. And those were up a lot today too. So we’ll see what happens going forward to something that we’ll watch for and continue to look at. But really, really good market. excellent day today. You know, things being that broadly up is just really fantastic to see. It’s very exciting. So look forward to seeing what’s going to happen here as we go. Hopefully, things continue to develop. I do think with today’s action, you’ll see at least some momentum going forward from that. probably see some additional gains, at least earlier this week. We’ll see what happens going forward. But look forward to seeing what’s gonna happen tomorrow. I will talk to you then. Thank you.