Transcript
Hello, everybody, welcome to Thursday, S&P 500 is up today again, .8%. Good day overall. And the leading a targeted indexes that we have today is the US home construction index that we bought recently, and up almost 3% today, which is really exciting all together. And so let’s just talk about this index and kind of the selection methodology and what’s in there. I like this particular index a lot, because it’s quite broad. It’s not just homebuilding. It’s also construction supplies, it’s home improvement to which I think is an important component. It’s the construction engineering, the electrical components, the home furnishings, the forest and wood products and construction materials, etc. So very broad reaching into all the different areas.
And so, look at the theme, what’s the concept that would drive this forward and continue to make it work? Well, interest rates being low, is a big boost to real estate as a whole, even for refinancing and putting that money back into your house or equity, Home Equity, credit lines, those types of things when rates are low, that makes that a lot easier. And of course, now that people are working from home a lot more, a lot of them want better homes, or you know, maybe they’re an apartment, and they want to be in a condo or what have you. So that’s a big piece of the driver. And the theme seems very strong there. So then you have to go look and see how it’s been doing. Okay, last nine months, this particular index is up over 30%, according to Morningstar, the S&P 500 has only been up a little over 4% in that same timeframe. So that’s really good. overperformance definitely got some momentum happening there. And then I also want to look and see what happened in the last downturn.
So the S&P was down, you know, 9%, from high to low. In September, how did this index do well did better. And that’s good, that tells me the market is very interested in this particular area. And so that’s why we bought it, you know, just recently, and of course, that’s why it’s doing pretty well, too. So, you know, we try to get into that momentum and such and let it let it ride out. But I also like it because it’s a diversified piece. We’re moving out of the technology and advanced healthcare and into some other areas that are doing quite well. We are seeing some spread, this money is starting to move around. It’s a different areas outside of technology and advanced healthcare, which are still doing quite well overall. But there’s not the only game in town anymore, which I really like that’s super healthy for the market going forward is to see more participation from companies and industries. And that’s that’s a good sign. I think that’s going to continue here as far as as I can tell. So I want to thank everybody for watching and let’s see what happens tomorrow. Thank you.