Happy Saturday, March 13th. WOW! It is hard to imagine that a year ago, the world and our lives as we knew it then, were about to go through a monumental change. What a ride we have all endured. As I write this, 13% of U.S. adults have now been vaccinated against Covid-19. It seems surreal to even type that statement. When you consider the changes we have seen in our daily routines, like how we communicate, how we work, how we play, how we live, it just doesn’t seem possible or plausible. Honestly, I miss a good handshake and an embracing hug. I am wondering when and if these symbolic gestures will return?
The Dow Jones notched another record high today, capping a strong week for the Index. On the flip side, the tech heavy NASDAQ exchange endured more weakness. The trend that started 2 weeks ago has continued as inflationary fears drive bond yields higher. Remember, the tech sector in general led the recovery from the March 2020 lows. As we adopted work from home strategies a year ago, technology was the driving force. The adage, “Buy low and Sell high” still rings true. As our country reopens, the more traditional value names are simply catching-up as part of this recent rebalance. We are not surprised to see this rotation taking place, although it may be occurring a little sooner than expected.
Stimulus checks will begin hitting bank accounts as soon as this weekend. The spending spree continues and the pent-up demand to eat in a restaurant and travel on a plane are quickly ramping up. As we begin to venture into our changed world, it is important to remember to be safe and respectful of one another. Not all individuals share the same views on socializing. With that being said, I think we could be in for one heck of a party this summer! There is no question that as the vaccines continue to roll-out and the numbers decline we will all “breathe” a little easier. I know I’m ready……..
Don’t forget to turn your clocks ahead tonight!
Your local Towson Financial Advisors
https://www.cnbc.com/2021/03/11/stock-market-open-to-close-news.html