📑 Research Notes for 2021-02-08
This week, we look at the fiscal stimulus package, small cap outperformance, S&P 500 component correlations, and insights into the January employment report.
We are a California-based registered investment advisor and investment thought leader, updating you on this week’s top investment observations and market performance.
Do not reply to this email with any service requests, contact us instead for support with your accounts if needed.
Democrats clear path for approval of Biden's $1.9 trillion COVID package.
(Reuters)
President Joe Biden and his Democratic allies in Congress forged ahead with their $1.9 trillion COVID-19 relief package on Friday as lawmakers approved a budget outline that will allow them to muscle Biden’s plan through in the coming weeks without Republican support.
🔗 Read More
When the pandemic hit, large stocks fell less than small stocks and recovered much quicker as well.Â
(Irrelevant Investor)
If you pull up a long-term chart of the Russell 2000 and the S&P 500, it looks something like this.
🔗 Read More
S&P 500 component correlations are pretty low.
(Sentiment Trader)
It's a truism of markets, lasting decades if not centuries, that when investors panic, they sell everything together. When they're comfortable, they buy and sell securities on their individual merits. That's why we see correlations among stocks and other assets rise during times of anxiety and fall during periods of complacency. This is notable now because the correlation among stocks in the S&P 500 has plunged to the lowest level in over a year..
🔗 Read More
Comments on the January Employment Report.
(Calculated Risk)
The headline monthly jobs number was below expectations, and the previous two months were revised down 159,000 combined. The headline unemployment rate was declined to 6.3%.
🔗 Read More
Curated by Joseph Lu, CFA®
Joseph has over a decade of experience as an investment professional, primarily in quantitative analysis and portfolio management roles. He is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder. The CFA charter is a globally respected, graduate-level investment credential by the CFA Institute, a global association of more than 90,000 investment professionals working in over 133 countries.
🔗 Connect with us on LinkedIn, Facebook, or Twitter.
🔗 How to invest with us.
Have a question about what we shared? Email us at info@consciouscapital.pro.
Do not reply to this email with any service requests, contact us for support if needed.
The information presented in this newsletter is for educational purposes only and is not a solicitation for any specific security, product, service, or investment strategy.
Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with a qualified financial advisor, tax professional, or attorney before implementing any strategy or recommendation you may read here.