Market Commentary — January 25, 2021
The equity markets finished the week slightly below record highs as investors continued to balance positive news with near-term challenges. In focus last week was the $1.9 trillion fiscal stimulus package, worsening coronavirus news, and a slow vaccine rollout. This week will shed light on corporate earnings, with 23% of the S&P 500 names reporting.
The recent two-and-half month stretch since Election Day has produced some of the strongest market performance since 1932, with a return for the S&P 500 of 14%. While there is plenty of evidence that the bull market still has room to run, elevated expectations could bode for a period of short-term consolidation ahead as future optimism confronts harsh near-term realities.
We have had a few clients reach out to us for a “Biden” ETF Model, of names likely to benefit in the coming year. Here is our best crack at the top 10 themes that seem likely to benefit from Biden initiatives and investor sentiment:
- Clean Energy
- Blockchain/Digital Currency & Payment
- Electric Vehicles/Battery Technology
- China/Emerging Markets Consumer
Another theme we are positioning clients for post-pandemic is Inflation!
This week is normally the week for one of our industry’s largest conferences, Inside ETFs in Hollywood, Florida. I am sorely missing in-person interactions with all my industry colleagues this week, but hoping to see you all safely in September. At least it looks like someone is saving our spot in the Diplomat Lobby for 2022.
Make sure you get your nominations in for 2020’s ETF.com Awards!
CEO and Co-Founder