Record Highs to Close Out 2020, SMID Caps Make Up Ground, and Commodities Break Above a 9-Year Trendline
January 4, 2021 | FIRESIDE CHARTS
Welcome to 2021! Santa Claus delivered a rally that brought the S&P 500® Index and the Dow to new record highs to close out a wild year. Though large caps—particularly those in the information technology sector—were particularly dominant in 2020, small and mid-caps have also made up significant ground to close the year on a positive note. Treasury yields remain anemic in this record-low environment, and the 10-year UST yield has yet to break 1% since the onset of the pandemic—what will it take to break through? Commodities meanwhile have climbed above a 9-year trendline on the sinking USD. Unemployment will remain a major concern in 2021, as will soaring Covid case counts as the U.S. death toll crosses 350,000. However, vaccination efforts—though they’ve fallen short of targets—are ramping up and will hopefully move us toward gaining control over the pandemic in the new year.
1. A nice, neat way to end a year to forget…
Source: The Chart Store, from 1/4/21
2. The Santa Claus rally delivered most of the year’s return…
Source: The Chart Store, from 1/4/21
3. How much of the current rally is based on speculation?
Source: The Daily Shot, from 1/4/21
4. SMID made up considerable ground…
Source: The Chart Store, from 1/4/21
5. What sectors lifted the S&P 500’s return?
Source: The Daily Shot, from 1/4/21
6. Now we know what the last ten years looked like…the real question is how different the next ten will look…
Source: The Chart Store, from 1/4/21
7. The USD continues to drift lower providing a tailwind to int’l and commodity investments…
Source: The Chart Store, from 1/4/21
8…and commodity prices are responding…
Source: The Chart Store, from 1/4/21
9. While many segments of the economy have essentially recovered, enough duress in the system is still causing 1 million new unemployment claims each week…
Source: The Daily Shot, from 1/4/21
10. The U.S. trade deficit hit a record $1 trillion…
Source: The Chart Store, from 1/4/21
11. All is not happy yet. The U.S. has 20.6 million Covid cases, twice that of any other nation, with 300,000 new cases on Saturday alone…
Source: JHU CSSE. as of 1/14/21
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.