Market Update April 26th, 2021

Consumer Staples Adjusting Process

What is it?

As per an article from Axios: “Procter & Gamble became the latest company to announce it will raise its prices in September to respond to higher commodity costs, joining consumer giants like Kimberly-Clark, Smuckers, Coca-Cola and a host of others.”*

Why does it matter?

Even though the Federal Reserve Board is not yet concerned about possible rising inflation, Consumer Staples corporate leaders are seeing their product cost increasing. They are now choosing to pass on these rising costs to consumers. As we have explained in the last few weeks, inflation may be lurking and could be a threat to further gains in the stock markets.

Portfolio Adjustments

What is it?

Over the last couple of weeks, we have been making adjustments to the holdings in all the models for client accounts over $25,000. We are moving to less volatile funds and have been raising some cash as we are seeing risk in the markets.

Why does it matter?

We are moving to less volatile funds and have been raising some cash as we feel that the surge from the post-COVID crash may be ending. We also are somewhat concerned about the market reaction to the upcoming tax bill.

We hope to get back to a full allocation once the news has passed.

Other articles I found interesting this week:

Einhorn Sees Broken Markets in N.J. Deli’s $105 Million Valuation

Stock Shorts Collapse as No Hedge Fund Wants ‘Head Ripped Off’

How companies should think about their office space needs in this environment

Current 401(k) portfolio

Our last portfolio reallocation: 2/8/2021. 

Want more information?

The weekly market update provides a window into the process we use in our investment management process. At MoneyCoach, we believe markets are always changing and require a nimble yet data-oriented approach. 

Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.

Click here for more details about our investment management

Sources:

*Dion Rabouin: “Inflation looks to be not so transitory as price hikes continue” 4/21/2021 Axios.com https://www.axios.com/inflation-federal-reserve-price-hikes-63588a9a-92cd-4764-8cd0-28778cf57c57.html

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