{"id":6588,"date":"2022-01-12T11:07:39","date_gmt":"2022-01-12T17:07:39","guid":{"rendered":"https:\/\/schenkelberg.investments\/?p=6588"},"modified":"2022-01-23T14:58:14","modified_gmt":"2022-01-23T20:58:14","slug":"market-update-4th-quarter-2021","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6588","title":{"rendered":"Market Update – 4th Quarter 2021"},"content":{"rendered":"\n

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

<\/a>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 measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE total return for the Fourth Quarter of 2021 was 2.8%.<\/a><\/p>\n\n\n\n

U.S. stocks outperformed International by a significant margin in 2021.  The S&P 500 Index achieved total return of 27.7% for the full year. MSCI EAFE International Index had 2021 total return of 12.2%. International stocks have struggled to regain growth following the COVID slowdown. International stocks remain significantly undervalued versus U.S. stock valuations. However, without signs of stable growth it will be difficult for international stocks to gain momentum.<\/p>\n\n\n\n

A few of the top performing international countries for the fourth quarter included United Arab Emirates, Saudi Arabia and Canada\u2014all countries that benefit from strengthening energy markets. Turkey and Chili were a couple of the weakest performing areas.  Both Turkey and Chili are susceptible to very high inflation and weak currencies. Inflation skyrocketed above 20% in Turkey.<\/p>\n\n\n\n

 <\/a><\/h2>\n\n\n\n

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

<\/a><\/a>Top performing U.S. S&P 500 sectors as reported by Koyfin for the fourth quarter of 2021 by total return include Real Estate (17.6%), Technology (16.7%) and Materials (15.1%). Laggards for the fourth quarter include Communications (-2.8%), Financials (4.6%) and Energy (7.9%).<\/a><\/p>\n\n\n\n

For the full year 2021 the top performing U.S. S&P 500 sectors included Energy (58.1%), Real Estate (44.7%) and Financials (38.5%). The weakest performing sectors included Utilities (16.6%), Communications (16.8%) and Consumer Staples (17.2%).<\/p>\n\n\n\n

Value-oriented investments that benefit from a recovering economy made a comeback in 2021 while stocks in general staged one of their largest increases on an annual basis. Weaker stocks included slower growth companies that tend to do well when the economy slows. Years of stimulus efforts by the Federal Government have left substantial funds in the economy with limited investment opportunities. This continued flow of funds is helping prop up stock prices<\/p>\n\n\n\n

\"\"
Performance Source: Koyfin<\/em><\/figcaption><\/figure>\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 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 measured by the iShares MSCI […]<\/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":"off","_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":[119,1],"tags":[],"class_list":["post-6588","post","type-post","status-publish","format-standard","hentry","category-market-commentary","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1Ig","jetpack-related-posts":[{"id":6678,"url":"https:\/\/schenkelberg.investments\/?p=6678","url_meta":{"origin":6588,"position":0},"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":[]},{"id":6538,"url":"https:\/\/schenkelberg.investments\/?p=6538","url_meta":{"origin":6588,"position":1},"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":6549,"url":"https:\/\/schenkelberg.investments\/?p=6549","url_meta":{"origin":6588,"position":2},"title":"Market Update – First Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"April 12, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 8.1% 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\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":6646,"url":"https:\/\/schenkelberg.investments\/?p=6646","url_meta":{"origin":6588,"position":3},"title":"Market Update. 3rd Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"October 18, 2022","format":false,"excerpt":"IndexThird Quarter 2022Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2022S&P 500-5.3%-24.8%Dow Jones Industrial Average-6.7%-21.0%Russell 2000-2.5%-25.9%\u00a0\u00a0MSCI EAFE (International Index)-10.4%-27.2%\u00a0\u00a0Barclays Aggregate Bond-4.6%-14.5% Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of -5.3% for the Third Quarter of 2022. U.S. stocks outperformed 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":[]},{"id":6558,"url":"https:\/\/schenkelberg.investments\/?p=6558","url_meta":{"origin":6588,"position":4},"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":6528,"url":"https:\/\/schenkelberg.investments\/?p=6528","url_meta":{"origin":6588,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6588","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=6588"}],"version-history":[{"count":2,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6588\/revisions"}],"predecessor-version":[{"id":6591,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6588\/revisions\/6591"}],"wp:attachment":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}