941.500.5122

Evan R. Guido Home
  • Home
  • About Aksala 
    • Who We Are
    • Who We Serve
    • How We Help You
    • Strategies
    • Team
    • Retire On Track Column
    • Fiduciary FAQ’s
  • Our Team
  • Tools 
    • Advisors
    • Accountants
    • Retirement Planning
    • Monthly Market Insights
    • Useful Links
    • Tax Resources
    • All Educational Resources
    • Glossary
  • Events 
    • Workshops and Client Events
  • 401k(s) 
    • Our Approach
    • Who We Work With
    • Compare Us
  • Compare Us 
    • Become a Client!
    • E-Money
    • Concierge Investing
    • Schedule a Meeting
    • How Do We Compare
    • Request Sample Reports
    • Fiduciary FAQ’s
  • Client Login
  • Contact 
    • Schedule A Complimentary Consultation
    • Schedule An Appointment
    • Refer A Friend

Monthly Market Insights | January 2021

U.S. Markets

A tumultuous year ended on a positive note as stocks rose in December, spurred by the rollout of multiple COVID-19 vaccines and the signing of a new fiscal relief bill.

The Dow Jones Industrial Average, which lagged all year, picked up 3.27 percent. The Standard & Poor’s 500 Index gained 3.71 percent, and the Nasdaq Composite tacked on 5.65 percent.1

quotation mark icon

Of all the hazards, fear is the worst.

Sam Snead, professional golfer who won a record 82 tour events during his career

Vaccines Take Center Stage

Investors were buffeted by news of rising infections and new lockdowns even as they kept a close eye on the start of vaccine distribution in the U.K., which some observers referred to as “the beginning of the end” of the coronavirus pandemic.

Boost from the Stimulus Package

Much like November, stocks rallied when Congress made progress on the new fiscal stimulus bill but pulled back as talks seemed to stall. After some posturing, President Trump signed the new law, which helped stocks surge in the final week of trading.

All Eyes on the Election

As investors grappled with these headline issues, markets also saw several new and secondary equity offerings, including two high-profile technology initial public offerings (IPOs) during the month. This year, companies raised over $167 billion in IPOs, blowing past the record of $107.9 billion set in 1999.2

Sector Scorecard

The majority of industry sectors posted gains in December, including Communication Services (+2.35 percent), Consumer Discretionary (+2.18 percent), Consumer Staples (+0.10 percent), Energy (+3.97 percent), Financials (+4.45 percent), Health Care (+2.30 percent), Industrials (+0.12 percent), Materials (+1.58 percent), and Technology (+5.14 percent). The Real Estate (-1.04 percent) and Utilities (-1.69 percent) sectors lost ground.3

U.S. Market Recap for December 2020MMI logo
S&P 500
green up arrow3.71
Month (%)
‌
green up arrow16.26
Year-to-Date (%)
Nasdaq
green up arrow5.65
Month (%)
‌
green up arrow43.64
Year-to-Date (%)
Russell 1000
green up arrow4.10
Month (%)
‌
green up arrow21.80
Year-to-Date (%)
10-Year Treasury
green up arrow0.92
Month (%)
‌
red down arrow-1.00
Year-to-Date (%)
Yahoo Finance, December 31, 2020. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid.

What Investors May Be Talking About in January

After the November election, markets rallied due to initial tallies that seemed to point to a potentially divided government, which historically has been a positive for the equity markets.4

However, Georgia’s two Senate seats remain undecided and will go to a special election this month.

Ultimately, this runoff will determine which party controls the Senate and may give insight into the future legislative agenda of the incoming Biden administration.

World Markets

International stocks enjoyed a strong month of performance, with the MSCI EAFE Index gaining 5.24 percent.5

Vaccine optimism and an exit agreement between the European Union and the U.K. helped power the markets.

Germany gained 3.22 percent while the United Kingdom picked up 3.10 percent. France lagged a bit, tacking on 0.60 percent.6

Pacific Rim markets also enjoyed a solid month. The Hang Seng Index rose 3.38 percent and the Nikkei tacked on 3.82 percent.7

World Market Recap for December 2020MMI logo
Emerging Markets December (%) Year-to-Date (%)
Hang Seng (China) green up arrow3.38 red down arrow-3.40
Kospi (Korea) green up arrow10.89 green up arrow30.75
Nikkei (Japan) green up arrow3.82 green up arrow16.01
Sensex (India) green up arrow8.16 green up arrow15.75
Jakarta Composite (Indonesia) green up arrow7.06 red down arrow-4.62
Bovespa (Brazil) green up arrow9.57 green arrow up2.88
IPC All-Share (Mexico) green up arrow5.48 green arrow up1.21
Merval (Argentina) red arrow down-6.13 green up arrow22.93
ASX 200 (Australia) green up arrow1.06 red down arrow-1.45
Europe    
DAX (Germany) green up arrow3.22 green up arrow3.55
CAC 40 (France) green up arrow0.60 red down arrow-7.14
Dow Jones Russia Index (Russia) green up arrow8.23 red down arrow-10.42
FTSE 100 (United Kingdom) green up arrow3.10 red down arrow-14.37
Yahoo Finance, December 31, 2020. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Indicators

Gross Domestic Product (GDP)

The final read on third quarter GDP was revised higher, from 33.1 percent to 33.4 percent.8

Employment

Nonfarm payrolls rose by a disappointing 245,000 in November. The unemployment rate ticked lower, falling from 6.9 percent to 6.7 percent. The labor-force participation rate was 61.5 percent, which is an improvement from April’s low but remains at a historically low level.9

Retail Sales

Retail sales fell 1.1 percent in November, showing a slowdown in consumer spending amid economic lockdowns and continued uncertainty. October’s retail sales number was revised downward, from an increase of 0.3 percent to a decline of 0.1 percent.10

Industrial Production

Rising for the seventh consecutive month, industrial output picked up 0.4 percent in November, powered by a 0.8 percent leap in manufacturing.11

Housing

Housing starts reached a nine-month high, rising 1.2 percent in November.12

Existing home sales declined 2.5 percent in November. It was the first decline in six months.13

New home sales slumped 11.0 percent compared to last month, but were 20.8 percent higher than in November 2019.14

Consumer Price Index

Prices of consumer goods and services rose by 0.2 percent in November, leaving the year-over-year inflation rate at 1.2 percent.15

Durable Goods Orders

Durable goods orders rose by 0.9 percent, marking the seventh consecutive month of gains.16

The Fed

In its last meeting of 2020, the Federal Open Market Committee (FOMC) detailed its plan to continue purchasing $120 billion in Treasury and mortgage-backed securities.17

Fed officials said that they will continue the program until they see substantial progress toward meeting its inflation and employment goals. Officials at the Fed have indicated that achieving such goals may not happen for years.17

By the Numbers: Eclipses

May 26, 202118

Next total lunar eclipse




14 minutes19

The eclipse’s duration

June 10, 202120

Next solar eclipse

Annular, meaning that the edge of the sun peeks outside of the moon21

Type of eclipse

3 hours, 45 minutes22

Longest potential duration for a lunar eclipse

7 minutes, 30 seconds23

Longest potential duration for a solar eclipse

324

Average number of lunar eclipses each year

225

Average number of solar eclipses each year

March 1, 197326

Release date for Pink Floyd’s The Dark Side of the Moon




15 million in the U.S., 45 million internationally26

Number of albums sold

93726

Number of weeks on the Billboard 200

Eclipse26

Alternative working title for the album


 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, or state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, timeframe, and risk tolerance.

The forecasts or forward-looking statements are based on assumptions, subject to revision without notice, and may not materialize.

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and considered a broad indicator of the performance of stocks of technology and growth companies. The Russell 1000 Index is an index that measures the performance of the highest-ranking 1,000 stocks in the Russell 3000 Index, which is comprised of 3,000 of the largest U.S. stocks. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark for the performance in major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

The Hang Seng Index is a benchmark index for the blue-chip stocks traded on the Hong Kong Stock Exchange. The KOSPI is an index of all stocks traded on the Korean Stock Exchange. The Nikkei 225 is a stock market index for the Tokyo Stock Exchange. The SENSEX is a stock market index of 30 companies listed on the Bombay Stock Exchange. The Jakarta Composite Index is an index of all stocks that are traded on the Indonesia Stock Exchange. The Bovespa Index tracks 50 stocks traded on the Sao Paulo Stock, Mercantile, & Futures Exchange. The IPC Index measures the companies listed on the Mexican Stock Exchange. The MERVAL tracks the performance of large companies based in Argentina. The ASX 200 Index is an index of stocks listed on the Australian Securities Exchange. The DAX is a market index consisting of the 30 German companies trading on the Frankfurt Stock Exchange. The CAC 40 is a benchmark for the 40 most significant companies on the French Stock Market Exchange. The Dow Jones Russia Index measures the performance of leading Russian Global Depositary Receipts (GDRs) that trade on the London Stock Exchange. The FTSE 100 Index is an index of the 100 companies with the highest market capitalization listed on the London Stock Exchange.

Please consult your financial professional for additional information.

Copyright 2021 FMG Suite.

1. The Wall Street Journal, December 31, 2020

2. The Wall Street Journal, December 30, 2020

3. FactSet Research, December 31, 2020

4. HartfordFunds.com, October 2020. “The Election and Your Portfolio.”

5. MSCI.com, December 31, 2020

6. MSCI.com, December 31, 2020

7. MSCI.com, December 31, 2020

8. CNBC.com, December 22, 2020

9. CNBC.com, December 4, 2020

10. TheNewYorkTimes.com, December 16, 2020

11. FederalReserve.gov, December 15, 2020

12. CNBC.com, December 17, 2020

13. CNBC.com, December 22, 2020

14. Census.gov, December 23, 2020

15. BureauOfLaborStatistics.gov, December 10, 2020

16. AdvisorPerspectives.com, December 24, 2020

17. CNBC.com, December 11, 2020

18. TimeandDate.com, 2020

19. TimeandDate.com, 2020

20. TimeandDate.com, 2020

21. TimeandDate.com, 2020

22. Softschools.com, October 1, 2020

23. Softschools.com, 2020

24. Softschools.com, 2020

25. NASA.gov, 2020

26. RollingStone.com, March 1, 2018

Share |

Contact

Aksala Wealth Advisors

Office: 941.500.5122

8225 Natures Way, Unit 119

Downtown Lakewood Ranch, FL 34202

info@aksalawealth.com

Quick Links

  • Retirement
  • Investment
  • Estate
  • Insurance
  • Tax
  • Money
  • Lifestyle
  • All Articles
  • All Videos
  • All Calculators
  • All Presentations

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.

Copyright 2021 FMG Suite.

Avantax affiliated financial professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC, Investment advisory services offered through Avantax Advisory ServicesSM, Insurance services offered through an Avantax affiliated insurance agency.

The Avantax family of companies exclusively provide investment products and services through its representatives. Although Avantax Wealth ManagementSM does not provide tax or legal advice, or supervise tax, accounting or legal services, Avantax representatives may offer these services through their independent outside business.

This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

Content, links, and some material within this website may have been created by a third-party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth ManagementSM or its subsidiaries. Avantax Wealth ManagementSM is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.