“Imagination is everything. It is the preview of life’s coming attractions.” … Albert Einstein
“It is to be regretted that the rich and powerful too often bend the acts of government to their own selfish purposes.” … Andrew Jackson
Where are we, at the end of January 2021?
January was a mostly down or close to breakeven month for the stock market averages, with the crazy, notable exception of the small company stocks, which were up around 5%. Our Wasatch Microcap fund was up 5.14%. This is a little odd, but small company strength is a great sign – small companies are really the core of the economy. Our ATAC rotation fund continued on a tear, gaining 4.62%. Remember that your December Fidelity statement may not have reflected all your December gains (however, your January balance is accurate) – due to ATAC’s December dividend payment not being received until January. Also, the Stoneridge fund was up an incredible 5.6% in January, due to one of its holdings being acquired at a very high price.
Regardless of every stated fear of the markets being overvalued or in a bubble, the fact remains that the internal statistics are healthy. There is plenty of cheap money around (including expected government stimulus) and the markets love that. Some day we may have a conversation in this newsletter about inflation or other consequences – but not yet apparently, so we stay invested.
Our funds outperformed generally, as you can see below and in your account returns.
How Did the Markets and our Funds Do in January 2021?