{"id":6549,"date":"2021-04-12T15:47:07","date_gmt":"2021-04-12T20:47:07","guid":{"rendered":"https:\/\/schenkelberg.investments\/?p=6549"},"modified":"2021-04-12T15:47:23","modified_gmt":"2021-04-12T20:47:23","slug":"market-update-first-quarter-2021","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6549","title":{"rendered":"Market Update – First Quarter 2021"},"content":{"rendered":"\n

U.S. Versus International<\/strong><\/h2>\n\n\n\n

The S&P 500, an index of large U.S. companies, posted a total return of 8.1% for the First Quarter of 2021. U.S. stocks outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE total return for the First Quarter of 2021 was 5.8%.<\/p>\n\n\n\n

U.S. stocks have consistently outperformed International stocks for the past 13.3 years. Outperformance has exceeded 200% over this time. The significant growth in U.S. companies, which has been dominated by technology, has eclipsed foreign markets. A predominant increase in the U.S. dollar has also contributed to outperformance of U.S. stocks versus international. When the U.S. dollar increases the value of the international stocks that have been purchased with U.S. dollars but are primarily valued in foreign currencies automatically falls.<\/p>\n\n\n\n

Looking forward, there are signs this trend could change. International stock prices are significantly cheaper than U.S.  ones. The price-to-earnings discount is currently -25.7% as of March 31, 2021, meaning that international stocks are 25.7% cheaper than U.S. stocks on average. Growth opportunities are also better for many international stocks, as data compiled by J.P. Morgan shows that European companies are expected to grow by 33% in 2021 versus 26% for U.S. companies.<\/p>\n\n\n\n

 <\/a><\/h2>\n\n\n\n

U.S. Sectors<\/strong><\/h2>\n\n\n\n

Top performing U.S. S&P 500 sectors as reported by Bespoke Investment Group for the first quarter of 2021 by total return included Energy (29.8%), Financials (19.1%) and Industrials (10.7%). Laggards for the fourth quarter include Consumer Staples (3.1%), Technology (3.8%) and Health Care (5.2%).<\/p>\n\n\n\n

Value stocks continued to stage a relative rebound versus growth stocks in the first quarter. Value stocks are represented by Industrials, Financials, Energy, Materials, Real Estate, Utilities and Consumer Staples.  Growth stocks are represented by Communication Services, Technology, Health Care and Consumer Discretionary. The gap between valuation of value stocks versus growth has significantly narrowed. However, value stocks remain significantly less expensive versus growth.<\/p>\n\n\n\n

U.S. bonds suffered a significant loss in prices in the first quarter, with the Barclays Aggregate Bond index falling 3.0%. Ten-year treasury yields spiked 81 basis points from 0.93% to 1.74%. Additional fiscal stimulus prompted increased fears of inflation, which spooked rate markets. The Federal Reserve has since stated they believe inflation can be contained within a reasonable level while economic growth prospects increase.<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 8.1% for the First Quarter of 2021. U.S. stocks outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE total return for the First Quarter of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[119,123],"tags":[],"class_list":["post-6549","post","type-post","status-publish","format-standard","hentry","category-market-commentary","category-market-performance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1HD","jetpack-related-posts":[{"id":6558,"url":"https:\/\/schenkelberg.investments\/?p=6558","url_meta":{"origin":6549,"position":0},"title":"Market Update – Second Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"July 6, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 8.2% for the Second Quarter of 2021. This performance almost matched the first quarter for a year-to-date return of 14.4%. U.S. stocks outperformed international again for the quarter as measured by the iShares\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2021\/07\/image.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6496,"url":"https:\/\/schenkelberg.investments\/?p=6496","url_meta":{"origin":6549,"position":1},"title":"Market Performance Update – 4Q 2019","author":"J.J. Schenkelberg, CFA","date":"January 14, 2020","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 10.7% for the Fourth Quarter of 2019, and 29.7 % for the full year. U.S. stocks outperformed international for the quarter as measured by the Morgan Stanley Composite Index EAFE, a representation of\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6528,"url":"https:\/\/schenkelberg.investments\/?p=6528","url_meta":{"origin":6549,"position":2},"title":"U.S. Stocks Dominate","author":"J.J. Schenkelberg, CFA","date":"October 12, 2020","format":false,"excerpt":"Last quarter we discussed how the largest stocks in the Standard & Poor\u2019s 500 Index are dominating stock market returns, helping drive S&P 500 returns versus stocks in the rest of the index and other major indices. Apple and Amazon continued to outperform in the third quarter with total returns\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":6588,"url":"https:\/\/schenkelberg.investments\/?p=6588","url_meta":{"origin":6549,"position":3},"title":"Market Update – 4th Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"January 12, 2022","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 10.7% for the Fourth Quarter of 2021. S&P 500 performance was driven by strength in select stocks with large weights in the index. U.S. stocks significantly outperformed international again for the quarter as\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2022\/01\/image.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6538,"url":"https:\/\/schenkelberg.investments\/?p=6538","url_meta":{"origin":6549,"position":4},"title":"Market Update – Fourth Quarter 2020","author":"J.J. Schenkelberg, CFA","date":"January 10, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 11.7% for the Fourth Quarter of 2020, bringing performance to 15.4% year-to-date in 2020. U.S. stocks outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6678,"url":"https:\/\/schenkelberg.investments\/?p=6678","url_meta":{"origin":6549,"position":5},"title":"Market Update. 4th Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"January 10, 2023","format":false,"excerpt":"IndexFourth Quarter 2022Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2022S&P 5007.1%-19.5%Dow Jones Industrial Average15.3%-8.8%Russell 20005.8%-21.6%\u00a0\u00a0MSCI EAFE (International Index)17.7%-14.4%\u00a0\u00a0Barclays Aggregate Bond1.6%-13.0% Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 7.1% for the Fourth Quarter of 2022. U.S. stocks lagged international for the quarter as\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6549"}],"version-history":[{"count":1,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6549\/revisions"}],"predecessor-version":[{"id":6550,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6549\/revisions\/6550"}],"wp:attachment":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}