Market Update March 2021

February turned into a pretty good month for the stock market. After the rapid decline the last week of January, many folks were a bit concerned that the market was headed for that crash so many people are predicting. While a crash could happen, there are SO many people predicting it that it could be a while before that happens. There’s an old saying that the stock market climbs a wall of worry. With so many people worried, it looks as if the market could continue to climb until euphoria grips the investor class. Then we are likely to see a correction, or maybe even a crash. I know p/e ratios are up which can mean the market is overbought and poised for a rapid decline. On the other hand, it may mean the companies of America had less than stellar earnings (the “e” in p/e) during the pandemic, so once the economy opens back up, all that pent-up demand will have cash registers ringing and companies’ earnings increasing rapidly. So, while the Bears are looking at the way things are now, the Bulls are looking at the way thing might be once the economic shackles come off. Since we can make rapid changes to our managed portfolios quickly, no matter which way the market goes, we believe we are ready for whatever happens. Speaking of the market, all four of the indexes we follow each month performed well in February. The Dow was up 3.17%, the S&P 500 was up 2.61%, the NASDAQ was up 0.93% and the Russell 2000 small cap index was up a very healthy 6.12% in February. This index (Russell 2000) has been performing much better than the other indexes since November last year (+43%). I believe that is because this sector was pretty beat up throughout the COVID period, when many of the small companies (like restaurant companies) had to shutter their doors for a while. So the small companies are simply catching up from when they were performing poorly. Here, at ProVest, we know there’s anxiety among many of our clients. We understand that. Any time you have real investments in your portfolio that go up AND down, some folks are going to be concerned when the down is happening. The reason we spend so much time and put forth so much effort researching different investments is because we want your assets to be in the right combination of stocks to give you the best return with the least amount of risk we can give you. If we are using a strategy that doesn’t seem to be working, we’ll study the reasons why, then make the changes we need to make to improve your rate of return. Some folks who come to us from other advisors have told me that they felt that their advisor, after a meeting with him, never even looked at their account until 10 minutes before their next meeting. I can tell you, in some cases that’s exactly the way it is.But with our active management approach, we may not be looking directly at your account, but we are looking at what you’re invested in and we’re constantly updating the investments in it. So, in essence, we are looking at and studying your portfolio every day. If you like the idea of constantly getting your advisor’s best efforts regarding your retirement asse

ts, give us a call right now. The number is 800-277-0025.