Monthly Performance Report June 2021
As the economy continues to gain steam, the transitory inflation debate continues to be the juggernaut for the markets, creating disproportionate gains for growth stocks not seen since Q3 2020. The S&P 500 Index produced a return of 8.6%, while the S&P 500 Growth index returned 11.9% over the S&P 500 Value index return of 5%.
Cloud Computing Competition Up
Competition in cloud computing between Amazon’s AWS, Google Cloud, and Microsoft’s Azure is getting more intense as it makes up a major source of revenue growth for all three companies. Plus, earnings season is in full swing.
Housing Market Cooling
Housing market looks to be cooling as existing home sales dropped by 0.9%. Lumber is down 60% from recent highs. Earning season picks up this week with reports from airlines, railroads, drug companies and technology.
Apple Driving Market Rally
Last week, meme stocks grabbed the headlines while stocks in general inched to record highs. Read more about upcoming economic reports and possible Fed responses in the Week Ahead.
2021 MEN of DISTINCTION
Bill Sowell and his wife, Cindy, have worked side-by- side together for more than 20 years. The duo have made Sowell Management one of the most successful and trusted investment firms in the entire state. Outside of dollar signs and portfolios, Sowell enjoys golfing, boating and duck hunting.
Fed’s Comments Push Equities Up
Sowell acknowledged that inflation had increased notably in recent months, but he reiterated that he saw it as transitory due to supply issues and the reopening of the economy. He believes the labor market has a long way to go and needs continued support. The bullish comments on supporting the economy for as long as it takes pushed equities higher for the week.
Fed Views Looking Hawkish by 2023
On Wednesday, the Fed raised its inflation expectations, saying that it is considering tapering its purchases of Treasuries and mortgage securities and showed a slightly more hawkish view towards 2023 rate hikes. Read more about expectations associated with Powell’s upcoming congressional testimony.
Used Car/Truck Prices Spike
The demand for used cars and trucks has surged as semiconductor shortages have crippled new car production and populations have shifted to suburbs. Read more about what is driving consumer prices up in the Week Ahead.
Meme Stocks Grabbing Headlines
Last week, meme stocks grabbed the headlines while stocks in general inched to record highs. Read more about upcoming economic reports and possible Fed responses in the Week Ahead.
Monthly Performance Report May 2021
Inflation pressures amid an economic re-opening continued to spook the markets intra-month in the wake
of GDP seen expanding at 7% this year and 2022 forecast at 3.3%. As a result, the S&P 500 fluctuated for most of May, ending the month with a gain of 0.70%.