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The markets have been very sloppy to start the first two months of 2021. They have worked their way higher the first of each month, only to give most of any gains back during the last week of each month. The HCM-BuyLine® is clearly up, and any pullback should be bought. Growth stocks have slowed as value and divided stocks are holding up reasonably well.
There are really two key headlines in the past 24 hours:
There has been quite a lot moving forward in the past few weeks. COVID-19 cases are trending definitively lower, even as variants remain a worry. Furthermore, the US has been steadily improving vaccine supply. The Biden Administration is invoking the Defense Production Act to boost the J&J vaccine production, which received the EUA (Emergency Use Authorization) in the past week. Merck and J&J will work together to boost production.
The ISM Manufacturing Index increased 2.1 points in February to 60.8, matching its highest level since May 2004 and stronger than the consensus of 58.9. The V-shaped recovery in factory activity that started with the reopening of the economy last spring has gained significant momentum as demand for manufactured goods picked up during the pandemic; and the sector has proven more conducive than services to operating under the COVID health measures. The current level of the index is consistent with above-trend growth in manufacturing output, fueling market expectations for a faster economic recovery this year. The ISM estimates that the latest index reading corresponds to 5.0% annualized growth in real GDP.
The increase in the ISM Index was spurred by a rebound in production and new orders, indicating stronger demand. Export order growth also picked up, although import orders eased slightly. Order backlogs accumulated at the quickest rate since April 2004. The pressure on operating capacity contributed to the fastest employment growth in nearly two years. But inventories fell back into contraction territory, after four months of tepid expansion. Manufacturers continued to experience slower deliveries, with that index reaching its highest level since the shutdown last April, and near the highest level it has seen since 1979. Slower deliveries typically translate into upward price pressures, particularly in the current environment that is still fraught with supply chain and transportation issues.
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This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Howard Capital Management, Inc. (“HCM”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from HCM. Please remember to contact your primary investment professional, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising HCM’s investment management services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment management services. HCM is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the HCM’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request. © 2021 Howard Capital Management, Inc. All rights reserved. Intended for receipt only and not for further distribution without the consent of Howard Capital Management, Inc.
Chair Yoga is a fantastic way for adults, especially older adults, to loosen and stretch painful muscles, lower stress and improve circulation. Just like a traditional yoga practice, chair yoga poses gives you all the health benefits to build strength and balance while reducing anxiety without having to worry about balancing on your head.
We invite you (and friends) to join us Thursdays at 10:00 am (EST) as we go LIVE each week online through Zoom.
Click the link below to register:
Practiced for thousands of years, yoga has had a revival in the last couple decades. Yoga can be an optimal exercise choice for many individuals of all ages. But before getting started with any fitness regimen, make sure to discuss any medical concerns with your healthcare provider; this information is not a substitute for medical advice.
While there are many different styles of yoga, generally speaking, yoga is a low-impact form of exercise. But in addition to the fitness benefits, it can help you learn relaxation and breathing techniques as well as how to regulate emotions and quiet your mind. It’s also a great form of exercise to do indoors, and there are thousands of free classes on YouTube So, if you’re still enduring the remnants of winter, you can practice “quieting your inner monologue, doing yoga from the comfort of your own home.
Tip adapted from Healthline.com (September 23, 2020)
Join us for our first Book Club meet w/ Diana, Vivian & Stephany - Friday, April 2nd @9:00am as we talk about The Princess Spy by Larry Loftis.
Filled with twists, romance, and plenty of white-knuckled adventures fit for a James bond film, The Princess Spy brings to vivid life the dazzling adventures of a remarkable American woman who risked everything to serve her country.
We look forward to seeing you all online!
When you sell a capital asset like an investment or a piece of property, the sale can result in a capital gain or loss. The IRS defines a capital asset as “most property you own for personal use or own as an investment.” Here are four facts you should keep in mind:
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov (October 15, 2020)
Recipe adapted from cafedelites.com (April 9, 2020)