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1st Quarter 2021 Markets in Review

April 19, 2021
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See the Q1 2021 Market Review

A year ago, at the end of March 2020, the US Stock Market1 was down over 20% and the world was scrambling into lockdown. Many experts wrote articles telling us where we would be in a year. I don't remember reading any that said the US Stock Market would be up over 62% over the next 12 months. But that's what happened.

Predicting any of that just won't happen. We should be prepared for market downturns once or twice a decade, while accepting we just can't know when they'll happen. We can't predict financial crises, but we should plan for them. That is our central role as a trusted financial advisor for our clients. To be a fiduciary who puts your interests first, helping you understand the range of possible outcomes to most reliably accomplish what matters most in your personal economy.

If you stayed in the market, it might be time for a victory lap. Q1 of 2021 has been up and down, but all Global equity markets finished the quarter in the black.

Q1 Global Equity Markets^
US Stock Market: +6.35%
International Developed Stocks4: +4.04%
Emerging Market Stocks5: +2.29%%
Global Real Estate6: +6.22%

Small Cap2 and Value stocks3 made a roaring return through Q1, up +12.7% and +21.17%, respectively. Suddenly reminding the masses why they've, on average, outperformed their counterparts (Large Cap and Growth stocks) through history. Conventional wisdom might expect that to continue as small businesses across the world inch toward full recovery.

However, as we forward-look to the rest of 2021, we'll stop well short of falling into "prediction-land". The focus will remain squarely on what we can control.

There are some big proposals coming out of Washington, with some seriously large dollar amounts attached (like, with 4 commas!). Let's keep a close eye on taxes, inflation, and a bit of momentum with interest rates. We can't change what comes in those realms, but we CAN affect how they impact YOU.

Cheers!

^Complete data contained within the full Q1 Market Review report. 1 US Stock Market represented by Russell 3000 index. 2 Small Cap represented by Russell 2000 Index. 3 Value stocks represented by Russell 2000 Value Index. 4 International Developed Stocks represented by MSCI World ex USA Index. 5 Emerging Market Stocks represented by MSCI Emerging Markets Index. 6 Global Real Estate represented by S&P Global REIT Index.



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*Check with your CPA to first understand your eligibility.

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