The major indexes bounced back in March, but technology continued to underperform.  The leaders this month were Utilities, Energy, Consumer Staples, Health Care. For the past 20 years, growth companies, especially technology, have led the charge higher for the stock market.  Recently, value stocks have been increasing the fastest, leaving many to wonder if value Investing is making a comeback. Today’s market has many points of interest to consider, and we are making changes to our portfolios to take advantage of the change in leadership. Things are changing, so we have to change.

Coronavirus COVID-19 vaccine

Things to Consider About the Market Today

There are many factors in today’s market that we believe have the potential to fuel a rebound in the stock market in the next few months:

  1. A $1.9 Trillion stimulus bill was passed. Stimulus checks have already been sent.  We believe that will help jump-start the economy and the stock market as people have discretionary money to spend and invest. 
  2. Many people contribute to IRA’s in April because of tax time. This buying is frequently beneficial to the overall market.  
  3. The vaccines appear to be reducing deaths, which has the potential to re-open the economy as people begin to eat out, go on vacation, and generally spend more. 
  4. Corporate profits are calculated year over year.  In the next three months, corporations will begin reporting their earnings for 2021 versus the Covid ravaged 2020 numbers. The improvements should be fantastic, which Wall Street should love. 
  5. Demographics will continue to be a tailwind for the next 15-20 years, the same way the stock market roared up in the 1980s and 1990s.  Generation X is firmly in its peak spending years. The Millennial generation (which is larger than the baby boomer generation) is entering its peak spending years.  When we study this data over hundreds of years, we find that a country with a significant portion of its population in its peak spending years is perfect for the economy and stock markets.  We believe this tailwind will aid the stock market in 2021, and years to come. 


piggy-bank- reflects bright future

What Does the Future of the Market Hold?

Today’s market has numerous factors that we feel have the potential to stimulate a bounceback. Because of the many optimistic points, we hold stock positions in our portfolio. Recent market activity points to the potential for new all-time highs in the stock market. 

We Are Here to Help

If you have any questions about your investment portfolio, taxes, retirement planning, our 401(k)-recommendation service, or anything else in general, please give our office a call at (586) 226-2100.

If you’d like to discuss how your portfolio is positioned from a risk standpoint, please reach out to us right away.  If you’ve had any changes to your income, job status, 401K options, address, or any other financial changes, please contact us. We’ll continue to monitor your investments daily and do everything in our power to protect and grow your accounts. If you have any feedback or suggestions, our team at Summit Financial would love to hear them. 


Bob, Ken, Jim, and Zach



A Special Note About Stock Rotation

We want to make our clients aware that we offer a higher-risk investment option called the Stock Rotation portfolio. TD Ameritrade does not charge commissions on individual stock transactions, and we aim to take advantage of that potential. Each month, our research analyzes the S&P 500 to find the top 7 stocks heading up and have an excellent technical analysis pattern. In good times, this portfolio aims to be 100% invested in individual stocks. When our research is less optimistic, we will move to a less risky allocation. Overall, for clients that are hungry for the potential of more significant gains, even if it’s a small allocation of your overall portfolio, this portfolio may be a good fit. If you’d like more information, please contact our office