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Weekly Investment Update

<!– {"name":"Weekly Investment Blog","type":"layout","children":[{"name":"Top Image (Featured Image)","type":"section","props":{"style":"default","width":"default","vertical_align":"middle","title_position":"top-left","title_rotation":"left","title_breakpoint":"xl","image_position":"center-center","height":"full","padding_remove_top":false,"padding_remove_bottom":false,"image_size":"cover","padding":"xlarge","image_effect":"parallax","image_parallax_bgy_end":"100","image_parallax_bgy_start":"-100","animation":"fade","animation_delay":true,"image_parallax_breakpoint":"m","image_width":"1560"},"children":[{"name":"","type":"row","props":{"layout":"1-3,2-3","divider":true,"vertical_align":true},"children":[{"name":"","type":"column","props":{"image_position":"center-center","vertical_align":"middle","media_overlay_gradient":"","width_small":"1-3"},"children":[]},{"name":"","type":"column","props":{"image_position":"center-center","text_color":"light","vertical_align":"middle","media_overlay_gradient":"","width_small":"2-3"},"children":[]}]}],"source":{"query":{"name":"posts.singlePost"},"props":{"image":{"name":"featuredImage.url","filters":{"search":""}}}}},{"name":"Blog Content","type":"section","props":{"style":"default","width":"default","vertical_align":"middle","title_position":"top-left","title_rotation":"left","title_breakpoint":"xl","image_position":"center-center","padding":"large","padding_remove_bottom":false,"animation_delay":false},"children":[{"name":"","type":"row","props":{"layout":"1-3,2-3","vertical_align":false},"children":[{"name":"","type":"column","props":{"image_position":"center-center","media_overlay_gradient":"","width_small":"1-3"},"children":[{"type":"image","props":{"margin":"default","image_svg_color":"emphasis","image":"wp-content\/uploads\/2020\/06\/Trans_Blue-Crown.png"}},{"name":"","type":"headline","props":{"title_element":"h2","title_decoration":"bullet","title_style":"h3"},"source":{"query":{"name":"posts.singlePost"},"props":{"content":{"filters":{"search":"","date":""},"name":"date"}}}},{"type":"list","props":{"show_image":false,"show_link":true,"image_svg_color":"emphasis","image_align":"left","image_vertical_align":true,"list_size":"","list_element":"ul","column_breakpoint":"m"},"children":[{"type":"list_item","props":{"content":"

Categories”}},{“type”:”list_item”,”source”:{“query”:{“name”:”categories.customCategories”,”arguments”:{“id”:0,”offset”:0,”limit”:10,”order”:”term_order”,”order_direction”:”ASC”}},”props”:{“content”:{“name”:”name”,”filters”:{“search”:””}},”link”:{“name”:”link”,”filters”:{“search”:””}}}}}],”name”:”Blog Category List”}]},{“name”:””,”type”:”column”,”props”:{“image_position”:”center-center”,”media_overlay_gradient”:””,”width_small”:”2-3″},”children”:[{“type”:”headline”,”props”:{“title_element”:”h1″,”content”:”Weekly Investment Update”},”source”:{“query”:{“name”:””},”props”:{“_condition”:{“filters”:{“condition”:”!!”},”name”:”title”}}}},{“name”:””,”type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

US stocks, as measured by the S&P 500 index, rose nearly two percent last week^{[1] as investors remained optimistic regarding the prospects for an end of the COVID-19 pandemic in 2021 and a sustained economic recovery. This week will have no shortage of potentially market-moving events:”},”source”:{“query”:{“name”:””},”props”:{}}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”}

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Event\n	Expectations\n	Importance for Investors\n	Potential Surprises\n\n
Federal Reserve Open Markets Committee\n	\n The FOMC will hold their January meeting on Wednesday where they are largely expected to continue to communicate monetary support for the economy in the form of near-zero interest policy and a continuation of providing liquidity through asset purchases.\n\n	\n Two key pillars of the market recovery that began last March have been unprecedented levels of economic support from the Federal Reserve (monetary) and the US government (fiscal).\n\n	\n Investors will be closely monitoring the meeting for any sign of potential divergence from the previously-communicated supportive monetary policy stance.\u00a0The expectation for an extended period of near-zero interest rates has significantly aided stock prices.\n\n\n
Corporate Earnings\n	\n Large US companies like Apple, Microsoft, Facebook, and Visa will report earnings this week, and it is expected that they will continue to confirm healthy levels of sales and earnings growth.\n\n	\n Technology, e-commerce, and communications companies have been relative winners during the pandemic as people switched to doing more at home. Low interest rates and durable earnings growth have led investors to pay above-average prices for many of these companies.\n\n	\n Any sign of potential slowing of earnings growth could create significant market volatility as investors reprice their expectations for future profitability.\n\n\n
Economic Releases\n	\n Q4 2020 US Gross Domestic Product will be released this week as well as the Conference Board\u2019s index of Leading Economic Indicators. Both are expected to show continued recovery in economic growth following the pandemic-induced recession.\n\n	\n Like corporate earnings above, investors have been expecting a sustained economic recovery, so these reports will confirm whether that trend remains intact.\n\n	\n A slowing of economic growth, particularly for future growth implied by the Leading Economic Indicator index, may impact stock prices.\n\n\n\n”,”text_size”:”small”,”css”:”table {\n border: 1px solid black;\n border-spacing: 0px\n \n}\nth {border: 1px solid black; background-color: #13284B; padding:5px }\ntd {\n border: 1px solid black; padding:5px}”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” Key Economic Releases This Week”,”css”:”p { \n margin-top: 50px\n}”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” \n \n \n \n \n \n \n \n Day\n Report\n Period\n Consensus Est.\n Previous\n\n Thursday, Jan. 28\n US Gross Domestic Product (quarterly change)\n Q4 2020\n 4.2%\n 33.4%\n\n Thursday, Jan. 28\n Leading Economic Index (monthly change)\n December\n 0.3%\n 0.6%\n\n Friday, Jan. 29\n Personal Income (monthly change)\n December\n 0.1%\n -1.1%\n\n Friday, Jan. 29\n Personal Spending (monthly change)\n December\n -0.4%\n -0.4%\n\n Friday, Jan. 29\n PCE Core Deflator (yearly change)\n December\n 1.3%\n 1.4%\n\n\n\n Source: Bloomberg”,”text_size”:”small”,”css”:”table {\n border: 1px solid black;\n border-spacing: 0px\n \n}\nth {border: 1px solid black; background-color: #13284B; padding:5px }\ntd {\n border: 1px solid black; padding:5px}”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” Asset Class Returns”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” \n \n \n \n \n \n \n \n \n \n \n Category\n Representative Index\n YTD 2021\n Full Year 2020\n\n Global Equity\n MSCI All-Country World\n 3.2%\n 16.3%\n\n US Large Cap Equity\u00a0\n S&P 500\u00a0\n 2.4%\n 18.4%\n\n US Small Cap Equity\u00a0\n Russell 2000\n 9.8%\n 20.0%\n\n Foreign Developed Equity\n MSCI EAFE\n 2.5%\n 7.8%\n\n Emerging Market Equity\n MSCI Emerging Markets\n 7.9%\n 18.3%\n\n US High Yield Fixed Income\n ICE BofAML High Yield Bond\n 0.4%\n 6.2%\n\n US Fixed Income\n Bloomberg Barclays US Aggregate Bond\n -0.8%\n 7.5%\n\n Cash Equivalents\n ICE BofAML 0-3 Mo Deposit\n 0.0%\n 0.5%\n\n\n\n Source: Morningstar as of January 22, 2021″,”text_size”:”small”,”css”:”table {\n border: 0.5px solid black;\n border-spacing: 0px\n \n}\nth {border: 1px solid black; background-color: #13284B; padding:5px }\ntd {\n border: 1px solid black; padding:5px}”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” Prices & Interest Rates”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” \n \n \n \n \n \n \n \n \n \n \n \n Representative Index\n Current\n Year-End 2020\n\n S&P 500\n 3,841\n 3,749\n\n Dow Jones Industrial Avg.\n 30,997\n 30,497\n\n NASDAQ\n 13,543\n 12,886\n\n Crude Oil\u00a0(US WTI)\n $51.98\n $48.52\n\n Gold\n $1,856\n $1,893\n\n US Dollar\n 90.24\n 89.94\n\n 2 Year Treasury\n 0.13%\n 0.13%\n\n 10 Year Treasury\n 1.10%\n 0.93%\n\n 30 Year Treasury\n 1.85%\n 1.65%\n\n\n\n Source: Bloomberg, US Treasury as of January 22, 2021″,”text_size”:”small”,”css”:”table {\n border: 1px solid black;\n border-spacing: 0px\n \n}\nth {border: 1px solid black; background-color: #13284B; padding:5px }\ntd {\n border: 1px solid black; padding:5px}”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:” [1] Source: Morningstar”,”text_size”:”small”,”attributes”:””,”css”:”p { \n margin-top: 50px\n}”}}]}]}]},{“name”:”Disclaimer”,”type”:”section”,”props”:{“style”:”muted”,”width”:”default”,”vertical_align”:”middle”,”title_position”:”top-left”,”title_rotation”:”left”,”title_breakpoint”:”xl”,”image_position”:”center-center”,”animation_delay”:false},”children”:[{“name”:””,”type”:”row”,”props”:{“column_gap”:”large”,”row_gap”:”large”},”children”:[{“name”:””,”type”:”column”,”props”:{“image_position”:”center-center”,”media_overlay_gradient”:””,”width_medium”:”1-1″},”children”:[{“name”:””,”type”:”text”,”props”:{“margin”:””,”column_breakpoint”:”m”,”content”:” Past performance may not be representative of future results. \u202fAll investments are subject to loss.\u202f Forecasts regarding the market or economy are subject to a wide range of possible outcomes. \u202fThe views presented in this market update may prove to be inaccurate for a variety of factors.\u202f These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. \u202fPlease contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.\u202f\u202f\u00a0″,”text_align”:”left”,”text_size”:”small”,”text_color”:”muted”}}]}]}]}],”version”:”2.2.2″} –> Written By: Contact An Advisor Follow Follow Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.