Approximately one year ago, COVID-19 was spreading throughout the world, and the daily news was consumed by the number of hospitalizations and deaths that were occurring here in the U.S. The stock market had fallen 35% from its recent high, and the Federal Reserve was forced into enacting emergency monetary measures to stabilize markets, while Congress rapidly put together and passed the $1.2 trillion CARES Act. Although the death toll continued to rise, markets were able to swiftly rebound thanks to the extraordinary fiscal and monetary stimulus, as well as rumors of progress on a vaccine.
Fast forward to today, and although the infection rate is higher than last spring, the death toll has measurably declined, and indeed, multiple vaccines are in the process of being administered around the world. U.S. equities recently marked an all-time high, while bond yields, which plummeted as the economy went on pause, have now recovered nearly back to pre-pandemic levels. U.S. GDP, which collapsed at a -31.4% annualized rate in Q2 of 2020, now stands poised to possibly accelerate by 6% to 10% here in 2021 on the heels of the $1.9 trillion American Rescue Plan recently passed by Congress.
To put it bluntly, after having had the world turned on its head for the better part of the past year, there is at last some bright light at the end of the tunnel, with stocks tied to a re-opening of the economy performing extraordinarily well and higher interest rates suggesting surging economic momentum.
Larry Whistler, CFA
Larry joined Nottingham in 2006 and heads the Investment Policy Committee, along with portfolio and relationship management responsibilities. Prior to joining Nottingham in 2006, Larry worked as an independent RIA for two years, and before that spent a decade as a bond trader for Merrill Lynch Capital Markets in Los Angeles and New York City.
Nottingham Advisors offers both institutional and individual clients experience, sophistication, and professionalism when helping them achieve their goals. With over 40 years of serving Western New York and clients in more than 30 states, Nottingham tailors each solution to fit the specific needs of each client.
For more information about Nottingham’s offerings, visit www.nottinghamadvisors.com or call 716-633-3800.
Nottingham Advisors, LLC (“Nottingham”) is an SEC registered investment adviser located in Amherst, New York. Registration does not imply a certain level of skill or training. Nottingham and its representatives are in compliance with the current registration and notice filing requirements imposed upon SEC registered investment advisers by those states in which Nottingham maintains clients. Nottingham may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. For information pertaining to the registration status of Nottingham, please contact Nottingham or refer to the Investment Advisor Public Disclosure Website (www.adviserinfo.sec.gov). Any subsequent, direct communication by Nottingham with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.
This newsletter is limited to the dissemination of general information pertaining to Nottingham’s investment advisory services. As such nothing herein should be construed as the provision of personalized investment advice. The information contained herein is based upon certain assumptions, theories and principles that do not completely or accurately reflect your specific circumstances. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Adhering to the assumptions, theories and principles serving the basis for the information contained herein should not be interpreted to provide a guarantee of future performance or a guarantee of achieving overall financial objectives. As investment returns, inflation, taxes and other economic conditions vary, your actual results may vary significantly. Furthermore, this newsletter contains certain forward-looking statements that indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of their dates. As such, there is no guarantee that the views and opinions expressed in this article will come to pass. This newsletter should not be construed to limit or otherwise restrict Nottingham’s investment decisions.
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