The S&P 500 Total Return Index gained 6.2% for the quarter while the Barclays U.S. Aggregate Bond Index declined 1.6% during this
The stock market’s strength during the quarter was driven by more hopeful expectations for the economy in 2021. Small stocks, typically more economically sensitive, outperformed larger stocks. Bond yields increased (and prices decreased) due to heightened inflation expectations. The markets will continue to be focused on the trajectory of the pandemic as well as the effectiveness of the government stimulus plans.
Previous periods of market volatility have demonstrated that trying to time the market is a difficult and typically underperforming pursuit. For long term investors, simply staying invested is the most prudent investment strategy.