Today’s markets were much calmer than we have seen in recent days with most US indexes finishing withing a half percent of where they began. The sole exception was Emerging markets, which have been correcting from their recent out-sized gains.
Fixed income again had a pretty mundane day with none of the major segments of the market moving too dramatically.
On the equity side, airline stocks did great today with most major air carriers up over 10% on the day, driven by hope that future occupancy rates will look a lot better than previously expected. I think there is still a huge chance of pain in the airline sector, but that is just my opinion.
On another note Schwab got the go ahead to acquire TD Ameritrade. As an advisor that primarily uses Schwab, this move makes me worried and hopeful at the same time. I fear that with this acquisition Schwab may pay less attention to the institutional side (which is already as bare bones as you can get, or even worse). On the other hand, I could see Schwab incorporating all the good parts of TD’s institutional platform that are better than what Schwab offers now, to create a better experience for advisors.
Once again Small Cap and Value stocks led markets, as we are seeing a temporary retreat from Large Cap and Growth exposures. As I have mentioned before, it is near impossible to call the cycles of Value vs Growth and Small vs Large, but we are current seeing historic disparities in performance which, in the past, have been followed by long periods of out-performance by the out of favor asset; in this case Small Cap, and Value stocks.
In Greyfox news; we are working on an active equity portfolio focused on inclusion and diversity as a way to invest in companies that do a great job on lifting people up. This is in conjunction with our core investment objective of building portfolios that invest in companies that are both potentially lucrative as well as engaging in work that will uplift our people and planet.