Transcript
Hello, everybody, welcome to Monday. Well, unfortunately, today the S&P 500 was down almost 1.9%. The really good news about that today is that it went down farther, and then it rallied up at the end of the day. And even right at the end, it was going up pretty hard. And it bounced off of some really good support. Support held, buying came in. Excellent. And the other part that I think is really interesting is, you know, the virus count came up into record territory over the weekend, and that really hit a lot of different industries that are, you know, kind of waiting for something better to happen with the virus, airlines, you know, cruise lines, those types of things.
And, you know, for us, we don’t have a lot of exposure to those types of industries, we’ve purposely shrunk up some of the, you know, broad market pieces, so we don’t have as much, you know, exposure there. And then these targeted pieces, as I mentioned before, they’re actually doing better in a virus environment. And that’s why a lot of the targeted pieces did better than the S&P 500. Today, also. And then I think most importantly, and maybe some of the best news today is that the treasuries really responded. And so we have a lot of treasuries in our portfolio of all different maturities, short, intermediate, long, extra long, and the extra long duration was up 1.4%. Today, the long duration was up point 9% today, so really, really good. Those parachutes are working, and they’re still coming out when they need to.
And I’m very, very pleased with that, because we kind of hung in on those treasuries. They weren’t doing that well in kind of normal markets, but they’re doing well here. And that’s why we have them, in case things fall apart. And I also think that what’s happening right now is the markets giving up on the stimulus concept before the election. And I don’t think that’s a bad thing. Having this market settled back down, get down to the support level is going to create some buying opportunities for people and they’re going to come come in and do what we saw today at the end of the day. But I really feel like the stimulus is still going to happen. There’s most scenarios I can think of I think stimulus will happen either right after the election, or right after the inauguration, kind of depending on what happens on what the outcome is. And the market can wait for that it is a forward looking mechanism. It’s looking down the road. And if they know that stimulus is coming, you’ll see you know, the market hang in there for that.
So elections happening pretty soon, you know, we could have some issues dealing with the contested elections. We’ll have to see what happens there as far as that goes. But overall, I think what happened today is okay, I’m not worried about it. You know, we’ll keep your eyes on things and see where it goes. And so I want to thank everybody for watching and let’s see what happens tomorrow. You know, does the market carry through on that bounce had at the end of the day? How does this respond? Thank you very much.