Watch the CPK Market Action Report: January 2021

Markets once again, shrugged off the increasing number of Covid-19 cases and the growing fears over more contagious strains of the virus by posting very strong results for the close of 2020. Will the trend carry us through 2021?

Watch the full 3-minute Market Action Report now: 

January 2021

Stocks rallied in December, fueled by the rollout of multiple COVID-19 vaccines and the signing of a new fiscal relief bill.

The Dow Industrials gained 3.3 percent while the S&P’s 500 Index rose 3.7 percent. The Nasdaq Composite, which led all year, added 5.7 percent.

Investors managed through crosscurrents of news on the pandemic, from rising infections and new lockdowns to vaccines' rollout.

Much like November, stocks rallied when Congress made progress on the new fiscal stimulus bill and pulled back as talks seemed to stall.

After some posturing, President Trump signed the stimulus package, which helped stocks move higher in the final week of trading.

After the November election, markets rallied due to initial tallies that seemed to point to a potentially divided government, which historically has been a positive for the equity markets.

However, Georgia’s two Senate seats remain undecided and will go to a special election this month.

Ultimately, this runoff will determine which party holds control of the Senate and may give insight into the future legislative agenda of the incoming Biden administration.

For the month of January, our models currently hold a 35% cash allocation. Our broad focus is on both domestic and international equities.

Domestically, our attention is on Mid Cap Growth, Small Cap Growth and Large Cap Growth with favored sectors of Technology, Consumer Cyclical, Industrial, Basic Materials and Healthcare.

As for International Equities, our attention in on Asia Pacific Developed and European Developed.

As a reminder, my current allocation is not a recommendation. Regardless of what happens next, investors like you need to have a simple and yet solid financial plan that reduces RISK, Costs and TAXES while securing the necessary income you need to maintain your lifestyle throughout retirement.

If you don’t have a plan OR you’re not comfortable with the plan you have, call me today to get pointed in the right direction.

I’m Chad Kunc and that puts a wrap on the December 2020 Market Action Report. Thanks for joining me. It’s time for me to get back to the markets.

And that action starts, NOW!