Winter Quarterly Commentary
Dear Clients and Friends,
We hope everyone is staying warm and healthy. From the ongoing pandemic, presidential impeachment and election uncertainty, civil unrest, & the stock market correction, it certainly was quite the year. We are all thankful for a fresh start in 2021!
After a slow start to 2021, global stock markets have turned positive for the year. The equity market move can still be attributed to Federal Reserve monetary easing, additional US and global fiscal support, and effective treatments and vaccines for COVID-19.
The S&P is now up 4.93%, the Dow Jones Industrials up 2.99%, International stocks MSCI EAFA up 5.63%, and the Barclays Bond Aggregate down slightly -1.84% (thru 02/17/21).
Technology, Energy, and Financials sectors are outperforming, while Consumer Staples, Utilities, and Industrial sectors have underperformed early in 2021.
MARKET OUTLOOK
From last quarter–
While we could not have imagined a global pandemic while giving our last quarter projections, we still believe the markets are attractive over the next 12- 18 months. Volatility will likely remain elevated due to COVID-19 concerns, geopolitical concerns (China, Iran, etc.), and the upcoming presidential election. With record low interest rates, government stimulus, and potential treatments for COVID-19 we continue to believe market pullbacks should be purchased and investors positioned for the start of a new bull market.
For this quarter–
Markets have moved up early in 2021, and we continue to remain constructive in our outlook. As additional vaccines become available, we believe the economic recovery will take hold and is sustainable. Improving economic conditions should help corporate earnings improve. We have been buying into market weaknesses. We currently favor overweighting Technology, Healthcare, and Financials.
The chart below reflects just how fast the market recovered from significant losses in 2020 compared to other bear market corrections. With swift action from the Federal Reserve and large Government Fiscal Stimulus the S&P 500 recorded one of the fastest recoveries in history.
Markets responded with fastest recovery in history
THE TEAM
We would like to introduce two new members of our team. Laura Ferrell is our new Office Coordinator and Tina Son has joined us as a Branch Associate. We are very excited to have them both on team Legacy!
Laura Ferrell – Office Coordinator
Laura joined our team as Office Coordinator in 2020, after a highly successful financial career in the credit union industry for over 17 years. She brings a refreshing perspective, energy, and enthusiasm to her colleagues and Legacy clients.
Laura grew up in Hampton Roads and raised her three now adult children in New Kent, Virginia. She recently became a grandmother and loves this new role!
Laura enjoys spending time at the beach, loves her two Labradors, and spending time with family and friends.
Tina Son – Branch Associate
Tina recently joined our team as a Branch Associate. She has over 15 years of experience in customer service and worked for Colonial Williamsburg for 5 years, where she managed five Taverns on property.
Tina supports Legacy’s team of Financial Advisors in a myriad of ways and is dedicated to going above and beyond for our clients.
Tina grew up in Annapolis, Maryland, and moved to the area in 2014. She appreciates the quaint intimate lifestyle in Williamsburg. Tina is a graduate of the Culinary Institute of America where she studied baking and pastry. She worked as a pastry chef and enjoyed making elaborate wedding cakes and specialty cakes. In her free time, Tina is an avid runner, plant enthusiast, and enjoys cooking.
Benny (Iris’s Dog) and George enjoying a late Friday afternoon at the office. Benny is now 6 1/2 months old and continues to bring lots of smiles to our Legacy family.
W. Scott Mowry, named to FORBES LIST of BEST-IN-STATE WEALTH ADVISORS
Williamsburg, Virginia – W. Scott Mowry, CFP®, of Legacy Financial Group located at 411 Scotland Street, Williamsburg, Virginia was among the Raymond James-affiliated advisors named to the Forbes list of Best-In-State Wealth Advisors. The list, which recognizes advisors from national, regional and independent firms, was released online February 11, 2021.
The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years’ experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients.
DID YOU KNOW TRIVIA
The median existing home sale ended 2020 at $309,800. This marks a 12.9% increase from a year ago. Interest rates have certainly attributed to this increase. In November 2020, the average 15-year mortgage fell to 2.31%. This was the lowest rate ever recorded since Freddie Mac started reporting almost 30 years ago!
We have listed a link to the most recent quarterly market data for your review. Raymond James’ Capital Markets Review reflects current market and economic conditions. You can access the report by clicking on the link: http://www.raymondjames.com/pdfs/capital_markets_review.pdf.
Thank you for your interest and as always please do not hesitate to contact us if you have any questions or comments.
Any opinions are those of Legacy Financial Group and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The MSCI is an index of stocks compiled by Morgan Stanley Capital International. The index consists of more than 1,000 companies in 22 developed markets. The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Investing involves risk and you may incur a profit or loss regardless of strategy selected. One cannot invest directly in an annex. Past performance is not indicative of future results
About Forbes ranking of Best-In-State Wealth Advisors
The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criterion due to varying client objectives and lack of audited data. Out of approximately 32,725 nominations, more than 5,000 advisors received the award. This ranking is not indicative of an advisor's future performance, is not an endorsement, and may not be representative of individual clients' experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/best-in-state-wealth-advisors for more info.
About Raymond James Financial Services
As of 12/31/2020. Raymond James Financial Services, Inc. is a financial services firm supporting independent financial advisors nationwide. Since 1974, Raymond James Financial Services Inc., member FINRA/SIPC, has provided a wide range of investment and wealth planning related services through its affiliate, Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. Both broker/dealers are wholly owned subsidiaries of Raymond James Financial, Inc. (NYSE-RJF) a leading diversified financial services company with approximately 8,200 financial advisors throughout the United States, Canada and overseas. Total client assets are $1.02 trillion. Additional information is available at raymondjames.com.
