%20(1).png?width=508&height=121&name=flourish-primary-logo@2x%20(1)%20(1).png){kind=logo}
An emotional response to extreme market volatility is normal. But letting your emotions take charge of your decision making can lead to outcomes you might regret. That’s why it’s important to understand what’s going on with your emotions so you can stay calm and respond with confidence.
The two most common responses
As a wealth strategist, I see two common behavioral responses during times of uncertainty: loss aversion and overconfidence.
Behavioral economics research shows that we experience the pain of losses about 2.5 times more intensely than we experience the euphoria of gains. This imbalance, known as loss aversion, can trigger a protective instinct when you see your portfolio deep in the red. Investors may try to shield themselves from further losses by selling out of positions after they’ve already declined. Doing that not only locks in losses but positions you to miss out on gains in the subsequent recovery.
At the other end of the spectrum lies the overconfidence bias. Investors displaying this tendency overestimate their ability to predict market movements and believe they have better investing acumen than the average investor. This can lead to excessive trading and greater risk taking, which can also be detrimental to your portfolio.
We want to navigate these moments with care and caution. Research firm Morningstar estimates that emotions “cost” investors 1.7% in returns each year. For a $5M portfolio, that equates to $85,000.
Building the foundation before emotions take charge
In my experience, the most effective approach to managing these biases is to be proactive. I find that investors who panic the least during market downturns are the ones who regularly think through both positive and negative market scenarios before they occur.
When markets are performing exceptionally well, we celebrate the gains while simultaneously reminding ourselves, “We know this won’t always be the case.”
By the same token, it’s important to keep in mind that when markets falter, that too is temporary. History shows that periods of decline are followed by recoveries. Staying the course sets you up to benefit from the recovery.
Ways to keep emotions in check
If you’re in the grip of loss aversion and have an overwhelming desire to stop the pain of a declining portfolio, start by taking a step back.
Sometimes temporarily unplugging from market updates can give you the emotional space to focus on the long term. Your financial plan is designed to weather short-term volatility and keep you moving toward your goals with confidence. We can revisit your plan at any time to ensure you’re still on track, despite market gyrations.
It can also be helpful to refer to historical data. History shows that market recoveries typically follow on the heels of downturns, rewarding patience far more often than panic. Being in cash for just 20 of the best trading days could slash your investment account returns by nearly 70%.
However, if you’re experiencing the “overconfidence” bias, the challenge is different.
In moments when you believe you’ve spotted the opportunity of a lifetime, or that you can time the market’s movements, it can be important to take a moment to slow down and have a discussion. Seek out opinions that can challenge your viewpoint or institute a “cooling off” period before making significant investment changes. Again, we’re here to support in these times too.
What CAN we do?
Sometimes, the urge to do something—anything—is overwhelming. Rather than making impulsive portfolio changes, I often recommend channeling that energy into productive financial activities that don’t upend your long-term strategy.
For instance, we can use times of market volatility to review your spending patterns and identify areas you could potentially trim without missing a beat. I find this gives people a sense of security knowing they’ll have more flexibility in the budget if the economy worsens.
Likewise, this can be a great time to review your emergency savings to make sure you have ample cash to get through three to six months of living expenses, for instance. Checking on your cash reserve can aid those worrying about future income.
Ultimately, navigating emotional investment tendencies can be less daunting when you have a strategic partner who understands your situation.
Your W&A “Chief Strategy Officer” is here to help you gain perspective when emotions run high and help you make decisions rooted in data and long-term planning. This relationship is especially important during periods of turbulence when a calm, objective voice can make all the difference in staying the course toward your long-term financial goals. Please reach out to your W&A wealth strategist with any questions and the opportunity to connect more on this topic.
New here? Learn about the Waddell & Associates difference and explore how you can work with us. We’d love to hear from you.
Teresa J.W. Bailey is President of Waddell & Associates, Nashville.
Sources: Morningstar “Mind the Gap” Report (2023), J.P. Morgan Guide to the Markets (Q1 2024), InsideBE.com (Behavioral Economics content)
This communication and its contents are for informational and educational purposes only and should not be used as the sole basis for any investment decision. Waddell & Associates does not provide personalized investment advice through this communication. The information contained herein is based on publicly available sources believed to be reliable but is not a representation, expressed or implied, as to the accuracy, completeness, or correctness of said information. Past performance does not guarantee future results.
">
For most investors, watching the market go down can be directly related to how much anxiety goes up.
An emotional response to extreme market volatility is normal. But letting your emotions take charge of your decision making can lead to outcomes you might regret. That’s why it’s important to understand what’s going on with your emotions so you can stay calm and respond with confidence.
The two most common responses
As a wealth strategist, I see two common behavioral responses during times of uncertainty: loss aversion and overconfidence.
Behavioral economics research shows that we experience the pain of losses about 2.5 times more intensely than we experience the euphoria of gains. This imbalance, known as loss aversion, can trigger a protective instinct when you see your portfolio deep in the red. Investors may try to shield themselves from further losses by selling out of positions after they’ve already declined. Doing that not only locks in losses but positions you to miss out on gains in the subsequent recovery.
At the other end of the spectrum lies the overconfidence bias. Investors displaying this tendency overestimate their ability to predict market movements and believe they have better investing acumen than the average investor. This can lead to excessive trading and greater risk taking, which can also be detrimental to your portfolio.
We want to navigate these moments with care and caution. Research firm Morningstar estimates that emotions “cost” investors 1.7% in returns each year. For a $5M portfolio, that equates to $85,000.
Building the foundation before emotions take charge
In my experience, the most effective approach to managing these biases is to be proactive. I find that investors who panic the least during market downturns are the ones who regularly think through both positive and negative market scenarios before they occur.
When markets are performing exceptionally well, we celebrate the gains while simultaneously reminding ourselves, “We know this won’t always be the case.”
By the same token, it’s important to keep in mind that when markets falter, that too is temporary. History shows that periods of decline are followed by recoveries. Staying the course sets you up to benefit from the recovery.
Ways to keep emotions in check
If you’re in the grip of loss aversion and have an overwhelming desire to stop the pain of a declining portfolio, start by taking a step back.
Sometimes temporarily unplugging from market updates can give you the emotional space to focus on the long term. Your financial plan is designed to weather short-term volatility and keep you moving toward your goals with confidence. We can revisit your plan at any time to ensure you’re still on track, despite market gyrations.
It can also be helpful to refer to historical data. History shows that market recoveries typically follow on the heels of downturns, rewarding patience far more often than panic. Being in cash for just 20 of the best trading days could slash your investment account returns by nearly 70%.
However, if you’re experiencing the “overconfidence” bias, the challenge is different.
In moments when you believe you’ve spotted the opportunity of a lifetime, or that you can time the market’s movements, it can be important to take a moment to slow down and have a discussion. Seek out opinions that can challenge your viewpoint or institute a “cooling off” period before making significant investment changes. Again, we’re here to support in these times too.
What CAN we do?
Sometimes, the urge to do something—anything—is overwhelming. Rather than making impulsive portfolio changes, I often recommend channeling that energy into productive financial activities that don’t upend your long-term strategy.
For instance, we can use times of market volatility to review your spending patterns and identify areas you could potentially trim without missing a beat. I find this gives people a sense of security knowing they’ll have more flexibility in the budget if the economy worsens.
Likewise, this can be a great time to review your emergency savings to make sure you have ample cash to get through three to six months of living expenses, for instance. Checking on your cash reserve can aid those worrying about future income.
Ultimately, navigating emotional investment tendencies can be less daunting when you have a strategic partner who understands your situation.
Your W&A “Chief Strategy Officer” is here to help you gain perspective when emotions run high and help you make decisions rooted in data and long-term planning. This relationship is especially important during periods of turbulence when a calm, objective voice can make all the difference in staying the course toward your long-term financial goals. Please reach out to your W&A wealth strategist with any questions and the opportunity to connect more on this topic.
New here? Learn about the Waddell & Associates difference and explore how you can work with us. We’d love to hear from you.
Teresa J.W. Bailey is President of Waddell & Associates, Nashville.
Sources: Morningstar “Mind the Gap” Report (2023), J.P. Morgan Guide to the Markets (Q1 2024), InsideBE.com (Behavioral Economics content)
This communication and its contents are for informational and educational purposes only and should not be used as the sole basis for any investment decision. Waddell & Associates does not provide personalized investment advice through this communication. The information contained herein is based on publicly available sources believed to be reliable but is not a representation, expressed or implied, as to the accuracy, completeness, or correctness of said information. Past performance does not guarantee future results.
">Keeping Calm Even When Markets Aren’t For most investors, watching the market go down can be directly related to how much anxiety goes up.An emotional response to extreme market volatility is normal. But letting your emotions take charge of your decision making can lead to outcomes you might regret. That’s why it’s important to understand what’s going on with your emotions so you can stay calm and respond with confidence.
The two most common responses
As a wealth strategist, I see two common behavioral responses during times of uncertainty: loss aversion and overconfidence.
Behavioral economics research shows that we experience the pain of losses about 2.5 times more intensely than we experience the euphoria of gains. This imbalance, known as loss aversion, can trigger a protective instinct when you see your portfolio deep in the red. Investors may try to shield themselves from further losses by selling out of positions after they’ve already declined. Doing that not only locks in losses but positions you to miss out on gains in the subsequent recovery.
At the other end of the spectrum lies the overconfidence bias. Investors displaying this tendency overestimate their ability to predict market movements and believe they have better investing acumen than the average investor. This can lead to excessive trading and greater risk taking, which can also be detrimental to your portfolio.
We want to navigate these moments with care and caution. Research firm Morningstar estimates that emotions “cost” investors 1.7% in returns each year. For a $5M portfolio, that equates to $85,000.
Building the foundation before emotions take charge
In my experience, the most effective approach to managing these biases is to be proactive. I find that investors who panic the least during market downturns are the ones who regularly think through both positive and negative market scenarios before they occur.
When markets are performing exceptionally well, we celebrate the gains while simultaneously reminding ourselves, “We know this won’t always be the case.”
By the same token, it’s important to keep in mind that when markets falter, that too is temporary. History shows that periods of decline are followed by recoveries. Staying the course sets you up to benefit from the recovery.
Ways to keep emotions in check
If you’re in the grip of loss aversion and have an overwhelming desire to stop the pain of a declining portfolio, start by taking a step back.
Sometimes temporarily unplugging from market updates can give you the emotional space to focus on the long term. Your financial plan is designed to weather short-term volatility and keep you moving toward your goals with confidence. We can revisit your plan at any time to ensure you’re still on track, despite market gyrations.
It can also be helpful to refer to historical data. History shows that market recoveries typically follow on the heels of downturns, rewarding patience far more often than panic. Being in cash for just 20 of the best trading days could slash your investment account returns by nearly 70%.
However, if you’re experiencing the “overconfidence” bias, the challenge is different.
In moments when you believe you’ve spotted the opportunity of a lifetime, or that you can time the market’s movements, it can be important to take a moment to slow down and have a discussion. Seek out opinions that can challenge your viewpoint or institute a “cooling off” period before making significant investment changes. Again, we’re here to support in these times too.
What CAN we do?
Sometimes, the urge to do something—anything—is overwhelming. Rather than making impulsive portfolio changes, I often recommend channeling that energy into productive financial activities that don’t upend your long-term strategy.
For instance, we can use times of market volatility to review your spending patterns and identify areas you could potentially trim without missing a beat. I find this gives people a sense of security knowing they’ll have more flexibility in the budget if the economy worsens.
Likewise, this can be a great time to review your emergency savings to make sure you have ample cash to get through three to six months of living expenses, for instance. Checking on your cash reserve can aid those worrying about future income.
Ultimately, navigating emotional investment tendencies can be less daunting when you have a strategic partner who understands your situation.
Your W&A “Chief Strategy Officer” is here to help you gain perspective when emotions run high and help you make decisions rooted in data and long-term planning. This relationship is especially important during periods of turbulence when a calm, objective voice can make all the difference in staying the course toward your long-term financial goals. Please reach out to your W&A wealth strategist with any questions and the opportunity to connect more on this topic.
New here? Learn about the Waddell & Associates difference and explore how you can work with us. We’d love to hear from you.
Teresa J.W. Bailey is President of Waddell & Associates, Nashville.
Sources: Morningstar “Mind the Gap” Report (2023), J.P. Morgan Guide to the Markets (Q1 2024), InsideBE.com (Behavioral Economics content)
This communication and its contents are for informational and educational purposes only and should not be used as the sole basis for any investment decision. Waddell & Associates does not provide personalized investment advice through this communication. The information contained herein is based on publicly available sources believed to be reliable but is not a representation, expressed or implied, as to the accuracy, completeness, or correctness of said information. Past performance does not guarantee future results.
" class="link-chevron">Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
">Girls Just Wanna Have Funds Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
" class="link-chevron">Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
">16 Ways to Ensure Your Business Can Survive a Downturn (And Bounce Back Afterward) Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
" class="link-chevron">Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
">5 Things You Need To Know To Survive And Thrive After A Divorce Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
" class="link-chevron">Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist
Sources: JPMorgan, Charles Schwab, Morningstar
">Five Financial Goals to Pursue in 2021 Bottom Line:
Major stock indexes pulled back modestly this week when bipartisan stimulus talks failed to materialize into any action or forward progress. Even with inaction in Washington, coronavirus trends continuing to worsen, and renewed activity restrictions, capital markets have performed resiliently, driven by the brighter outlook of vaccine rollouts. That outlook has been supporting growth in certain sectors and regions…
Full Story:
Global equity markets have staged a remarkable recovery from their March lows; however, the recovery has been regionally disproportionate. The U.S. and emerging Asian (China, South Korea, India, Taiwan, etc.) equity markets have fully recovered their COVID-19 losses and stand in solidly positive territory. In contrast, other regions have not fared as well. Although regions and their dominant countries have specific issues and trends, differences in the economic sector composition between regional equity markets may likely explain the divergence in year-to-date performance.
The U.S. and Emerging Markets (EM) Asia equity markets are heavily tilted towards sectors that performed well during the COVID pandemic, including the social distancing compatible sectors – technology and communication services. On the other hand, developed international and other EM regional equity markets tend to tilt towards economically cyclical sectors like financials, industrials, materials, energy, and consumer discretionary. With the possible exception of consumer discretionary, these cyclical sectors felt the full brunt of the pandemic shutdowns and coinciding recession.
As of the end of October, differences in sector performance were at extremes, with technology up 33% and banks down 40%. As a result, the U.S. and EM Asia indexes were up 3% and 12%, respectively, while Europe, Japan, and EM excluding Asia were still negative year-to-date. Overall, the U.S. was outperforming international markets by 10%.
During November, we started to receive positive news about vaccine trials starting with the Pfizer efficacy levels and followed by similar results from Moderna and AstraZeneca. The positive vaccine data and resulting uptick in forward economic growth expectations (along with moving past the election) bolstered global stocks performance to one of the best calendar months on record.
And it wasn’t just the absolute performance that was noteworthy; we started to see some level of sector rotation that should be commensurate with an economic reopening in 2021. As a result, the cyclical sectors and cyclical-heavy regions performed the best during November. European equity markets had their best monthly performance ever, while Japanese equities hit their highest level since 1991. The U.S. dollar also weakened by over 2%, which provided a tailwind to returns for U.S. based global investors. Meanwhile, the defensive sector-heavy regions like the U.S. and EM Asia did well but lagged in relative returns. Overall, the U.S. underperformed international markets by 3% in November.
Overall, the fourth quarter has been a robust period for global stocks, as the MSCI All Country World Index posted gains of near 12% through December 10th. Emerging market stocks led the way, posting a 16% gain compared to 13% for developed international stocks and 9% for U.S. stocks, as you can see in the chart below. This EM outperformance is an interesting story that may have legs in 2021.
China is the bully on the block (RIP Tiny “Deebo” Lister) in the Emerging Markets Index. It makes up slightly more than 40% of the MSCI EM Index and has six of the top ten stocks. After introducing COVID-19 to the world one year ago, China currently stands as the only major economy that will grow in 2020 (1.9% projected real GDP growth per the IMF), and its stock market has returned approximately 25% year-to-date. However, the fourth quarter outperformance by EM stocks was concentrated elsewhere. In fact, Chinese stocks (measured by the MSCI China Index) lagged their EM and developed international peers with gains of 8%. We can theorize that Asia has less to gain from a vaccine, as the virus is largely under control in much of the region. And, again, China’s economy is already growing after fully recovering from the pandemic.
The largest EM performance contributors were regions outside of Asia – Latin America, Eastern Europe, Africa, and the Middle East. Latin America, led by Brazil, has posted a 30% gain in the fourth quarter (as measured by the MSCI Brazil Index). Much like in the U.S., equities have performed resiliently despite the backdrop of Brazil (and the broader Latin America region) experiencing rising COVID cases and securing a much smaller amount of vaccine doses relative to its population compared to Europe or the U.S.
Looking back to the first chart, we see that Latin American equity markets are composed of 68% economically cyclical sectors. Sector rotation and fourth quarter outperformance is supported by rising prospects for a global recovery in travel and transportation in 2021 and lifting commodity-sensitive EM stock markets in Latin America, Eastern Europe, Africa, and the Middle East regions.
According to Wall Street analysts’ 2021 consensus estimates, the recovery in global demand may drive earnings of emerging markets companies to exceed those of both the U.S. and developed international markets next year. Significantly lower valuations also increase the longer-term potential for EM outperformance. With lower valuations, stronger earnings expectations, and the potential for a weaker U.S. dollar, EM equities fourth quarter outperformance may signal things to come in 2021.
Have a great Sunday!
Timothy W. Ellis, Jr., CPA/PFS, CFP®
Senior Investment Strategist, Wealth Strategist