Transcript
Hello, everybody, welcome to Tuesday, the S&P 500 was down .3% today, and really all three of the big indexes were down today. But we were up actually we did really well today as a whole specially in our models, the small cap index was up a lot today, we have two pieces, and each one of our models on both the traditional and the ESG side, in in these reopening situations, small caps do better. And today, the focus was on reopening the 10 Year Treasury started to move up in terms of the yield. And so you know, what the bond market is telling us is that they see this calming movement of upward economic growth. And so it is readjusting itself to that growth. And so that’s a good thing actually, that if you watch the bond market is very much so signaling that we’re looking at a very strong economic growth.
You know, normally in a recession, you have this recession, that can be quite dramatic. But the recovery is usually you know, fairly slow, because you’re still dealing with the economic issues that are happening. In this particular situation, we had a very abrupt downturn. And it looks like we have a very abrupt reopening. So it’s different. This is not like a normal economic cycle, you throw in all of this stimulus that they’ve put out, as well as the possibility of more infrastructure programs and things that they’re working on. And that makes that economic rope reopening even stronger. And so, again, you want to be in those value stocks, those reopening stocks. And so today, we made one adjustment to the portfolio to the traditional model, we took out one of the two energy pieces, and we added in a transportation piece.
So the idea behind this is that things are going to move more so people are going to move. So this has airlines and those types of things and things are going to move right as as restaurants reopen, and retail stores reopen, and people get out into the malls, somebody’s got to get that product there. So we have, you know, a marine port services as part of this transportation, airlines, railroads, trucking companies, delivery companies, like UPS and Federal Express, you know, et cetera, so it’s really incredible, all those things are going to go through those companies that we have in that index. And today, I had a really good day. And I’m very excited about that as a as an addition to the portfolio, and then people are gonna move places, they’re gonna move to restaurants, they’re gonna move to Walt Disney, they’re going to move to these other, you know, Hawaii, wherever it might be, it’d be a little while, there’s still some issues happening with the virus.
But personally, I just have a really hard time seeing, you know, at least here in America, especially things shutting back down to the point where we were last year where it has really big economic impacts might be a little while before, we really see a lot of things. We also own a lot of different, you know, Live Nation, which does concerts and Madison Square Garden’s in our portfolio. Matter of fact, Manchester United, which is the big soccer team in England is in the portfolio, maybe it takes a while for them to allow full audiences to come back. Again, those are sort of under different regulations within those states or those counties and what have you. So you know, we’ll see how that works out.
But once they do, were there, we all know stocks, I think we’re gonna look back and say, Hey, we got them at a pretty good price. You know, we weren’t in at the very beginning, you know, we were working on the other stuff from last year, which did very well. And we’ve transitioned over to this. So and then, of course, on that bond side, you got to be real careful, keep things real short, I think, you know, again, is that yield continues to come up and it could come up quite a bit more, in my opinion, we’re gonna see the price of bonds come down even more. So we’ve got a lot of short term stuff, which holds in a lot better. And then of course, we’ve got the inverse pieces, which you know, go up when, when the bond prices go down.
So we’re there. We’re waiting today was a reopening day, so to speak. And hopefully we continue to see some more and more and more of those. I think that’s where things are heading and then we’ve got it we’ve got the right situation, the right portfolio for that. So look forward to seeing what’s gonna happen tomorrow. Thank you very much.