Site icon Directional Advisors

What I Care About This Week | 2021 Dec 27

Photo by Simon Berger on

by Franklin J. Parker, CFA

This week’s market update is somewhat abbreviated due to the Christmas and New Year’s holidays.

The Summary

Some Charts

Our first chart is that of personal consumption expenditures, and how they have gown year-over-year. November’s spike is a genuine concern as it continues the trend from October. Investors will watch December figures quite closely.

Our next chart is curtesy of Goldman Sachs which shows that over a third of the S&P 500’s 2021 return has come from just five companies: MSFT, AAPL, GOOGL, TSLA, and NVDA. The remaining 495 companies are responsible for the other 65% of returns. It is this divergence that worries some analysts. A more inclusive rally would typically be indicative of a healthier market and economy.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Directional Advisors to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professionals, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.

Exit mobile version