January 15, 2021 | Newsletters
A. Fourth Quarter Review
US Market
US equities gained over the quarter. The majority of the move was in November due to the positive vaccine news which had markets looking ahead to a time when economies would be reopened and back to “normal”. Talk of a $900 billion stimulus package announced in late December also had a positive impact on equity markets. The Federal Reserve continued to reinforce its supportive message, by stating it will maintain the current levels of money printing at approximately $120 billion per month and hold interest rates at near zero for as far as the eye can see! COVID-19 has provided the Fed with a license to print! During the quarter, economically sensitive sectors made the strongest gains, while more defensive sectors, which had performed strongly earlier in the year, made modest progress.
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