Seamark View

IINVESTMENT MARKET OVERVIEW

2nd Quarter, 2021

Prepared by

R. William Blasdale

July, 2021

 

Here are the indices that we typically review:

                                                                                                                                           2020 %                                                                    6-mos 2021%                                                                                                                                

Russell 1000 (Domestic Large Cap):

20.96

14.95

         Russell 1000 Large Cap Growth

38.49

 12.99

         Russell 1000 Large Cap Value

  2.80

17.05

Russell 2000 (Domestic Small Cap Stocks):

19.96

17.54

          Russell 2000 Growth

 34.63

  8.96

          Russell 2000 Value

   4.63

26.69

Russell Mid Cap

17.10

 16.25

          Russell Mid Cap Growth

35.99

10.44

          Russell Mid Cap Value

  3.73

 19.45

MSCI EAFE (International Stocks):

  7.82

   8.83

MSCI Emerging Markets:

18.31

   7.45

Fixed Income (Bloomberg Barclay’s US Agg):

  7.51

  -1.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                               

 

 

 

 

 

 

 

Equity markets continued to perform extremely well in the 2nd quarter.  Small, Mid and Large Cap domestic stocks all did well.  While the “value” style of investing continues to prevail year-do-date, in recent weeks the growth style has seen a bit of a renaissance.  International equities continue to do well, but at a somewhat less torrid pace. 

Fixed income continues to be a challenge.  You may recall that interest rates were inching up during the 1st quarter.  That trend reversed in the 2nd quarter, driven by increased concern over the resurgence of Covid19 and a strong demand for bonds driven by the relative attractiveness of US rates compared with the rest of the developed world, and demographic trends (investors tend to become more conservative as they age). 

The current situation was summed up best by the Chair of the Federal Reserve, Jerome Powell, in Congressional testimony on June 22, 2021:

I think the overall point is that the data that we’re looking at in the labor market and for inflation and growth, it’s in such an unusual setting of reopening the economy, we have to be very humble about our ability to really draw signals out of it.  It may take some patience to see what is really happening.

Well, if the outlook isn’t quite clear for the Chair of the FED, I don’t feel guilty that it’s also murky for me, too! It is crystal clear, however, that trying to anticipate and react to shorter term market trends is impossible.  We are all far better advised to rely on the fundamentals that have proven to be true over time:  the key to investing is to decide on an overall asset allocation (cash/stocks/bonds), implement it with low-cost investment vehicles, monitor longer-term performance and make minor adjustments as warranted, and resist the urge to get too “fancy” in terms of exotic investments, market timing, etc.  The goal for most of us, after all, is to conserve capital, provide for spending needs, and preserve the purchasing power of our portfolios.

In this regard, my two favorite parts of the enclosed Performance Report are the Growth Chart in the upper right, and the Since Inception numbers in the bottom right.  The Growth Chart shows graphically how your total portfolio has performed since inception.  The yellow line shows “cumulative net investment,” e.g., how much you put in netted against how much you have taken out, and what your value would have been with no investing activity.  The green shading shows the actual total portfolio value, and the impact that your investment returns have made.  All this is quantified in the Since Inception numbers, providing an illustration of how a modest mid-single-digit compound investment return accomplishes our planning goals.  These numbers are even more remarkable if one considers the turbulence we have ridden through over the years:

 

Maximum Drawdown of the S&P 500 Index in Recent Market Declines

 

                                  Dot-Com Bubble                               2000-04                -49%                     

                                  Global Financial Crisis                     2007-09                -56%

 

As always, Lynne and I are deeply appreciative of the trust you have placed in us and for your continued confidence.

R. William Blasdale

July 14, 2021

 

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes the judgment of Seamark Financial Services, Inc. (Seamark) as of the date of this report and are subject to change without notice.

Additional information, including management fees and expenses, is provided on Seamark’s Form ADV Part 2. As with any investment strategy, there is potential for profit as well as the possibility of loss.  Seamark does not guarantee any minimum level of investment performance or the success of any portfolio or investment strategy. All investments involve risk (the amount of which may vary significantly) and investment recommendations will not always be profitable.  The investment return and principal value of an investment will fluctuate so that an investor’s portfolio may be worth more or less than its original cost at any given time.  The underlying holdings of any presented portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Past performance is not a guarantee of future results.

Presentation is prepared by: Seamark Financial Services, Inc.

(508) 758-6159

www.seamarkfinancial.com

Copyright © 2016, by Seamark Financial Services, Inc.

 

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