New Street View Video Delivers a Message in a Bottle

LPL Research Chief Investment Officer Burt White contends there is one metric above all others that may tell us how well the economy is doing. “Message In A Bottle” is approved for clients.

Daily Insights

US Stocks Set for Second Straight Rally as Retail Trading Frenzy Subsides

• European markets are broadly higher in midday trading as EU economy contracts less than expected.

• Eurozone gross domestic product (GDP) shrank 0.7% during the fourth quarter versus Bloomberg consensus forecast of 0.9%.

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Index Performance

US and International Equities

This month provided mixed results for the major market indexes. The Dow Jones and S&P 500 ended the month lower. The Nasdaq Composite continued its run into the New Year, returning over 1%, but the top performer was the Russell 2000 small cap index, returning 5% for the month. Small caps continue their ascent higher from their robust 2020 fourth quarter finish.

Energy Powers Forward

With regard to the S&P 500 sectors, results were fairly mixed, however the major standout was the energy sector, returning over 3% for January. Wi

Stocks got off to a nice start in 2021, until the late January selloff, as everyone got GameStop fever. Should bulls worry about what a down January might mean for the rest of 2021?

There’s an old adage on Wall Street that suggests, “As goes January, so goes the year.” This was first discussed in 1972 by Yale Hirsh of the Stock Trader’s Almanac, and it has an impressive track record.  Simply put, when the first month of the year was green, it bodes well for the rest of the year (and vice versa). Given stocks closed red in January, how worried should investors be?

As shown below in the LPL

Index Performance

US and International Equities

The major market indexes finished the week lower with all averages down over 2%. Small caps, which have been a bright spot in recent months, also pulled back 2%. In addition, both the MSCI EAFE and Emerging Markets (EM) international markets followed the US markets lower this week.

Real Estate Holds Ground While Most Sectors Sell-Off

All major market sectors sold off this week with the materials and energy sectors lagging all, pulling back over 4%. Nevertheless, energy is still the top performing sector year-to-date with a 6% gain.