March 26, 2021
Optimism returned to the market this week on improved investor sentiment surrounding the U.S. economic reopening, on 10-year U.S. treasuries retreating from recent highs and as the Federal Reserve dished out some positive news for the banking sector. Travel-related stocks such as airlines and cruise ships helped move markets higher on growing optimism that the economy is on the verge of a complete opening. As of Thursday, 70% of Americans 65+ have received at least one dose of the Covid vaccine. The vaccination rollout is expected to move into overdrive in the coming weeks with dozens of states opening vaccinations to all adults. With the nation averaging about 2.5 million shots per day, that should help stem the recent rise in daily new coronavirus cases seen over the last few weeks. Bond investors also got some good news this week as 10-year treasury yields fell to 1.67% from a recent high of 1.75%. The rate moves also benefited growth stocks with investors scooping up recently battered names. Bank stock investors also cheered the Federal Reserve’s announcement that it would relax regulations on the banking sector by reducing pandemic limits on buybacks and dividend increases, commencing in July. That should help attract more investors into banking stocks which should experience healthy gains as demand for credit increases. The positive developments drowned out the week’s soft data on personal income and spending and existing home sales. Overseas, the Eurozone returned to growth for the first time in months amid strong manufacturing gains. For the week, the Dow Jones Industrial Average finished up 1.36%.
Personal Income and Spending Slide
A Tale of Two Real Estate Markets
A Eurozone Returns to Growth but Struggles to Maintain Momentum
Markets will be closed on Friday, April 2nd, in observance of Good Friday. Week in Review will return on April 9th with the latest ISM Manufacturing and Non-Manufacturing figures. In overseas action, China releases composite PMI numbers.
To our Friends and Clients
This past year has been described as challenging, tumultuous, and stressful, to say the least. I don’t think many of us would have ever imagined living through this experience. However, some have also described this season as a time to slow down, to count our blessings, and to find joy in small moments.
In the midst of all of the uncertainty, one constant has been the value of personal and professional relationships. We want to thank each of our clients for your trust and confidence in us, for being a blessing in our lives, and for letting us be part of yours. We continue to be inspired by our clients’ commitment to achieving long term financial goals, particularly throughout such turbulent times. Despite the heartache caused by the pandemic, many individuals and families have used this time to reevaluate what is important — both personally and financially. Our advisors have continued to help clients tackle financial planning and estate planning tasks for themselves and for their families, providing families with peace of mind and confidence about their future and their legacy.
The last twelve months have shown us that unexpected events really do happen in life. It is heartening to see firsthand how, as humankind, we possess an incredible capacity to adapt and yet still thrive in response to change at all levels. The world is undoubtedly a different place than it was just last March. There have been massive shifts in our priorities and goals, both in our daily lives and our businesses. These will need to be met with a new set of planning techniques — specific to these new goals at this specific moment in time. As such, it seems only appropriate that we should emerge from this event during the springtime, a season characterized by repair and new growth, and address these challenges and opportunities. Our entire staff is committed to serving you and refining your financial plans as we embark on this new phase together.
We are filled with hope and optimism that we will soon be able to safely see more of you in person. With precautions to maintain the health and safety of our associates and our clients in place, our team of advisors, analysts, and client service professionals are continuing to serve our clients with a variety of financial planning and wealth management needs –- both virtually and in-person. Helping you achieve your goals has always been ours, and we are available to address any questions or changes that may have arisen over the past year.
Best wishes for health and happiness on the road ahead,
Porter L. “Buddy” Ozanne, III, AEP®, ChFC®