Acumen Portfolio Performance YTD 2021
Commentary on Portfolio Performance – January 2021
Acumen & Trust’s portfolios had a steady start to 2021. Some US equity indices hit new record highs at the beginning of the month with better-than-expected corporate earnings announced. But the positivity faded away as January ended when investors fretted over new virus strains, vaccine delays, stimulus package hold ups. Eurozone Government Bond markets also gave up some ground as further interest rate cuts seemed less likely. Despite the ongoing volatility in two significant asset classes, the Acumen portfolios returned another positive month and we will monitor developments with interest as 2021 unfolds.
The rotation into “cyclical” stocks such as financials and energy stocks continued. Emerging markets were strong due to robust economic data improving risk appetite and better control of virus outbreaks locally. In the US investors day traded the market aggressively focussing on US gaming merchandise retailer Gamestop. European Government and Corporate Bonds both gave up some ground as yields rose on reduced likelihood of further ECB interest rate cuts. Gold fell back slightly but Commodity prices in general continue to climb higher in anticipation of industrial recovery.