On this week’s episode of the Wiser Roundtable podcast, the team provides Q1-2021 market commentary and performance. The market has rebounded from the lows of the pandemic shutdown. The team reviews the winners and losers and why staying invested in the market was the best decision investors could have made in 2020.
The team starts the podcast by reviewing market performance over the past year. The market has rebounded since the coronavirus shutdown in the spring of 2020. The S&P 500 is up 57% since the lows of 2020 and up 6% in the first quarter of 2021.
Growth style and value style investing have seen large gains over the past year. Leading the way in growth style investing are big tech firms who are up 70% vs last year as companies responded to telework and other restrictions related to the pandemic. Value stock was up 50% last year as demand for energy, financials and industrials has grown. We see these trends in growth and value stocks occurring around the world. By being investors in core ETFs, Wiser was able to easily diversify and have a play in all 11 sectors.
Staying invested for the long-term is a key lesson learned from the pandemic. There were many investors who panicked and moved their investments to cash. Those investors have missed out on all the gains the market has seen since the lows of spring 2020. The government was able to provide stimulus funds to help buoy the economy.
Real estate is another sector of the economy that has seen growth over the past year. Now is a great time to take advantage of low interest rates and refinance your mortgage.
1:59 Prior Year Market Performance
5:58 Growth vs Value Investing
12:55 Behavioral Finance
15:01 Fear as an Investment Strategy
19:24 What does the future hold?
27:00 Why a Financial Plan is Your Blueprint to Financial Freedom