Transcript
Hello, everybody, welcome to Wednesday, a green shirt day today. Finally, the S&P 500 was up 1.54%. And we’re just seeing a continuation this market is doing fantastic. And, you know, we had some very unusual leadership today from some areas that I haven’t seen at the top of the leaderboard before with utilities. And the European zone today was in the leaderboard Germany in some of these places, global infrastructure materials. So really interesting, haven’t seen that combination before throughout this downturn.
So we’ll have to see what happens going forward, I generally look for longer term trends, like at least nine months of run before we invest. And I have found that that continues for usually another nine to 12 months. And that’s kind of what’s happening right now. I think one really interesting thing to think about with this particular market is just kind of what’s happening. If we have this river that’s very, very wide and very smooth moving. And let’s just say it’s all the money that’s out there, and it’s just moving along. And if we take the sides, the canyon on each side of that river, as you make them closer together, the volume and the rush going through, it gets to be higher. And so what’s happening is the canyon walls are getting closer if you if you lower interest rates to zero, nobody wants to move their money into the bank. So the bond market is much.
So now we’re looking at the stock market and the real estate market, for example. And if you take the stock market, and you knock out a big chunk of the stock market because of the virus, and these things aren’t working, you’re left with advanced health care and home rebuilding and technology, right. And so the money in the flow is coming through really hard and really fast. That’s why you’ve seen such explosive growth on the stock side. So the portfolio’s that we’re dealing with is because that canyon has gotten quite narrow and we’re in the canyon, we’re in the right spot. We’re making the money that we should be making. We do have to watch at some point in time when that thing broadens out. And so today was the day where things kind of broadened out one day isn’t enough to make a trend but it’s something to watch for. So so that’s what’s happening very excited things are going super well. And let’s see what happens tomorrow. Look forward to talking to you. Thank you.