Market Commentary — January 4, 2021

Happy New Year and welcome 2021! The stock market posted modest gains the last week of the year, capping off a strong year for the market for tech and growth stocks.

Looking back to the depths of pandemic despair in February and March, it is hard to believe that the market sits near record highs. Why was the stock market ultimately immune to the pandemic? Wall Street’s resurgence was fueled by the largest federal government stimulus package ever, unprecedented support from the Federal reserve, and optimism that ultimately all the economic pain and personal hardship will come to an end in the coming year.

Armed with effective vaccines, investors are focused on the future and stocks are, as LPL’s Ryan Detrick points out, “a forward-looking mechanism.” What is past, is past and the future economic picture looks bright.

Speaking of bright, over the holiday weekend, Bitcoin ignited, surging to a new record level, pushing above $34,000 for the first time. Investors are betting on continued institutional interest and “alternative currencies” such as Gold and Bitcoin have been a main beneficiary of the pandemic as inflation looms on the horizon.

Also fanning the flames of crypto speculation, VanEck refiled its SEC application for a bitcoin ETF. The ETF sponsor may be betting that a change in leadership at the SEC, with Jay Clayton stepping down as chairman, combined with Bitcoin’s growing institutional acceptance has increased the odds for regulatory approval of a Bitcoin ETF.

Jane Edmondson
CEO and Co-Founder

About

EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 25 years in the investment industry.

Disclosure

The information provided on this page is for illustrative purposes only and is not intended to serve as investment advice. The information provided is as of particular time and subject to change at any time without notice.

It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. EQM Indexes does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. EQM Indexes Indices makes no assurance that investment products based on the Index will accurately track index performance or provide positive investment returns. EQM Indexes is not an investment advisor, and makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this article. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by EQM Indexes to buy, sell, or hold such security, nor is it considered to be investment advice.