Benchmark Returns for the Period Ended
March 2021
| Quarter | Annualized | |||
|---|---|---|---|---|
| 1 Year | 5 Year | 10 Year | ||
| US Treasury Bills (one month) | 0.01% | 0.08% | 1.07% | 0.55% |
| Barclays Capital US Gov’t/Credit Inter Bond | -1.86% | 2.01% | 2.75% | 2.88% |
| Standard & Poor’s 500 | 6.17% | 56.35% | 16.29% | 13.91% |
| Russell 1000 Value (large cap value) | 11.26% | 56.09% | 11.74% | 10.99% |
| Russell 2000 (small cap) | 12.70% | 94.85% | 16.35% | 11.68% |
| Russell 2000 Value (small cap value) | 21.17% | 97.05% | 16.35% | 11.68% |
| MSCI Europe, Australasia and Far East (EAFE) | 3.48% | 44.57% | 8.85% | 5.52% |
| MSCI Europe, Australasia and Far East (EAFE) Small Cap | 4.50% | 61.98% | 10.50% | 8.01% |
| MSCI Emerging Markets | 2.29% | 58.39% | 12.07% | 3.65% |
| Wilshire REIT | 8.81% | 34.74% | 4.96% | 8.48% |
| Source for returns: Morningstar TM as of 3/31/2021. | ||||
Quarterly Commentary
The first quarter saw equity markets continue their strong run following the lows reached just over a year ago. Domestic small and small value stocks led the way again this quarter, returning 12.70% and 21.17%, respectively (per the Russell 2000 / 2000 Value). They were followed by large cap value (per the Russell 1000 Value) with an 11.26% return. International equities also had positive performance, returning 3.48% for international developed markets (per the MSCI EAFE Index) and 2.29% for emerging markets (per the MSCI Emerging Markets Index).
During the quarter, we had a transition from one administration to another, additional fiscal stimulus, and an acceleration in domestic vaccine deployment. As of the drafting of this commentary, all Floridians age 18 and over are eligible to receive a COVID vaccination. When we look back at both the fiscal support and vaccine development decades from now, we might be amazed at what we have accomplished in just over a year. It is no wonder that equity markets are at record highs.
Historical data suggests that investors should welcome all-time highs, not fear them. Although it seems counterintuitive, since 1988, stocks purchased on days the S&P 500 reached a record high performed better than those bought on any other random day. The outperformance was 2.9% for the next year and 7.5% over the next five years.1
Can markets continue their ascent? The short answer: no one can predict market performance, especially during condensed timeframes. The long answer: patience, discipline, and sticking to your plan, regardless of market conditions, has rewarded investors for more than a century. We have every reason to believe that these principles will continue to serve investors well.
Worrying whether the market is too high and its performance too strong is a feeling we all would have welcomed with open arms and disbelief 12 months ago! With that in mind, we leave you with this oft-used saying: “The best time to invest was yesterday; the second-best time is today.”If you have thought about becoming a client or would like a second opinion on your current holdings, please contact us via the button below and we would be glad to assist you in achieving your financial goals.
- Data provided by JP Morgan Private Bank as of August 27, 2020. 5-year performance is cumulative.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Indices are not available for direct investment; therefore their performance does not reflect the expenses associated with the management of an actual portfolio. The index returns above assume reinvestment of all distributions. This information is for educational purposes only and should not be considered investment advice or an offer of any security for sale.
