The new year started as we expected: inflation continuing to rise, the Federal Reserve getting increasingly hawkish, interest rates rising, and with a rotation out of growth stocks into value. However, in mid-January, the market’s attention turned to Russia’s building of troops on Ukraine’s border, and ultimately to Vladimir Putin’s and Russia’s invasion – the consequences of which are myriad.

2021 began with a hopeful optimism of a soon-to-be vaccinated world, and our being able to put the COVID-19 pandemic in the rearview mirror. As the year progressed however, the reality was less sanguine, and a rollercoaster ride of setbacks, followed by incremental positives, followed by more setbacks ensued. An initially disjointed vaccine rollout gained momentum in the spring, but the take rate in the U.S. has been behind other industrialized nations.

Cases of whiplash must have spiked lately. After all, in a few short months, market commentators have abruptly transitioned from: “inflation is transitory” to “inflation might be more persistent” and now “prepare for stagflation!” As discussed in our last writing, the stock market had appeared to be fully in the Fed’s camp, perceiving the recent spike in inflation as a temporary phenomenon.

In this short question and answer session, our portfolio managers take on the questions that prospective clients ask us most often during the due diligence process. 

Transitory. Anyone following the markets during the second quarter heard the word bandied about ad nauseam, and the question of whether inflation would serve to be temporary (transitory) or more permanent drove the daily movements of the market.

Have you been observing the rotation to value stocks and wondering if it’s sustainable? If so, you’re invited to watch this call replay where our PMs offer their perspectives on today’s market.

The new year began with the Georgia Senate runoff which saw both seats going to Democrats, thereby giving the Dems an effective majority in the Senate. Unshockingly, a new $1.9 trillion stimulus package was passed along party lines soon thereafter. 

First and foremost, we hope this writing finds you and your families healthy. It’s been a long twelve months and no one could be criticized for being happy to see the end of 2020. So much changed so quickly at the beginning of the year, as COVID-19 rapidly spread around the world, creating the first global pandemic of our lifetimes.

Investing in people with specific skillsets that aren’t recognized by the broader community is a recipe for success in baseball as well as portfolio management. New Podcast with PM Steve Labbe.

Concerned about richly priced growth stocks, a return of inflation and the lack of yield available in the bond market? Our new whitepaper explores how value stocks can provide solutions.