Monthly Investment Update: June 2021

We monitor the backdrop for investing in risk assets across three primary pillars: economic conditions, asset prices, and technical considerations such as investor sentiment. On balance, we still believe that conditions are favorable for accepting investment risk, but above average asset class valuations and the potential for above-trend inflation should give pause.

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Bitcoin, Blockchain, and Values-Based Investing

Since its inception, Sovereign Financial has encouraged clients to align their investments with their values because investment is an act of ownership. We believe it is wise to own companies that fill a need in society, produce a sustainable profit, generate a positive return, and bless humanity and the world through their products and processes.

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Weekly Investment Update May 24, 2021

While equity markets were down slightly last week (the S&P 500 index lost -0.4%), it has still been a relatively strong start to the year for stocks, in general. The S&P 500, which is a proxy for large-cap US stocks, and the MSCI All Country World Index, a proxy for global large and mid-cap stocks, have gained 10.6% and 8.6%, respectively, so far in 2021.

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Monthly Investment Update: May 2021

US stock market indices, such as the S&P 500, touched new all-time highs in April as economic, household, and business data all continued to imply that the recovery from the COVID-19 economic recession remains on track and stable. As of this writing, nearly 45% of US adults have received at least one vaccine dose, and the rollout of the vaccine campaign in the US has led to a stark divergence in the performance of various equity sectors and industries since late 2020.

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Weekly Investment Update April 27, 2021

Since 1987, the American Association of Individual Investors (AAII) has published survey results of investors that simply asks the question, “What direction do AAII members feel the stock market will be in the next six months?” While the results are often mixed, the survey could be utilized by portfolio managers to identify periods of excessive optimism or pessimism regarding the stock market.

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Weekly Investment Update April 12, 2021

The unique nature of this most recent recession, marked by a very sharp contraction in economic activity due to government mandated limits on activity followed by unprecedented fiscal and monetary stimulus as well as a quick economic reopening, may have potentially created some logistical challenges. In other words, factories and other key elements of the global supply chain may have shut down for economic or health-related reasons, and now must get back online quickly to support significant demand stemming from cash rich households and businesses.

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