Transcript
Hello, everybody, welcome to Tuesday, big day today for the S&P 500. Up a little bit over 1.6%. And the big news today for the stock market was really the nomination of Janet Yellen for Treasury Secretary, she used to be a Federal Reserve Chairman, who was very well liked in the market did quite well, while she was in charge. The current Federal Reserve Chairman is very well liked to the market has done pretty well, while he’s been in charge. And so the combination of those two is really important, you can make an argument that the Treasury Secretary and the Federal Reserve Chairman are more important than the president, in terms of how it impacts the market, the stock market itself.
So good news today for stock investors. And that’s why we saw some pretty strong markets. And I’ll show you just kind of quickly what’s happening here. In in, this is the S&P 500, as represented by Vanguard’s version, have looked at this before, here’s this range kind of broke out, broke out, fell back down that day broke out here fell back down, broke out, again, we keep breaking out, eventually going to you’re going to get some good movement there. So that was a big day today, you can see actually, that little bar right there is pretty strong.
The other thing I think’s important to talk about right now is just kind of what’s going on in this concept of kind of momentum versus value stocks. And so, you know, here’s an example. And I’ve shown you this before, but you can just still running. It’s crazy how long it’s doing. This is our Smart Mobility index. And so you can see, you know, these moving averages are all going up, the price is up and broke out in this range. So the S&P 500 is right here right now kind of waffling around in that range. Perhaps it takes off too little, we’ll see what happens there. But that’s a classic momentum motion. But what has happened is we’ve had quite a few of these kind of slow down because of the vaccines that are coming out. And there’s been a rotation towards those stocks that haven’t done as well. But we call Value Stocks. And so here’s our big winner today. This was at 4.4% today, and this is our Large Cap Value Index with a Small Cap Value Index was up 3.7% today, so really good numbers. You can see this is totally different looking chart, right it fell with the virus and then just didn’t come back at one run in June. But we broke out of that run today and really, really flying. So this is why you want to have these different pieces part is diversification.
So today, you know we made great money yesterday today, we wouldn’t have made as much without the value. And so now we’ve got some places that are capturing that money as it moves around. And I’m really happy with that. So let’s see what happens going forward. But a good day for us in our portfolios, and I look forward to seeing what’s going to happen tomorrow. Thank you very much.