The management team at Assured Capital Partners pivots to face the new year and new challenges and provides a varied outlook for 2021.
ADDISON, TX, January 29, 2021 /Neptune100/ — With 2020 in the rearview mirror now may be a good time for reassessing how we got here. We had hoped that so much of the COVID-19 virus drama would begin fading from the forefront at this point. However, this was not to be. The virus has proven more dogged than most of us were expecting and the rollout of the vaccine has been slow, plagued by confusion and delays. Now that 2021 has arrived the US stock market does appear that it too will be at least partially defined by the human response to the virus just as most of 2020 was.
2020 was one of the most tumultuous years of recent memory. Aside from the horrors and tragedies of the COVID-19 virus, the year also featured extreme hardship, tragedy, tension, and divisiveness for much of the nation. That 2020 featured the shortest bear market in history, sandwiched firmly in between two bull markets, is well documented. As are so many of the ingredients for its recipe. Yet amid all of the turmoil Assured Capital Partners strived to remain a source of stability for all clients to depend on. A reliable beacon of light in the fog, shepherding their investments safely through the turbulence. By year’s-end the Balanced Growth Fund LP had another extraordinary year, narrowly missing surpassing a 40% return for the third time in the fund’s existence. According to hedge fund database service EurekaHedge (https://www.eurekahedge.com/), the fund has now returned over 376% since inception as of the end of 2020. So what does the firm see in store for 2021?
There are growing signs that US stock market fundamentals are weakening due to increasingly over-valued equities and the drastically rising number of speculative trades in the options market. Owing at least in-part to the record number of new retail trading accounts in the aftermath of the first and second CARES acts and the $3 trillion worth of capital injected into the economy.
The S&P 500’s weight is represented roughly 23% by the big-6. That is a disproportionately higher concentration than ever before. The broader market is far too susceptible to shifts in the big-6 tech stocks, the 5 FAANG stocks (Facebook, Apple, Amazon, Netflix, and Alphabet) and Microsoft. Without these 6 stocks the S&P 500 would have been roughly flat over the last two-plus years. The forward price-earnings ratio for the S&P 500 is hovering around 23. Nearing its highest levels in 21 years.
Please visit Harvest at https://www.hvst.com/organization/assured-capital-partners/posts/turning-the-page-on-2020-and-looking-to-2021-EdnT8mG6 to continue reading the conclusion of our 2021 market insights.
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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Every investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
Assured Capital Partners, located in Addison, Texas, is a privately held, boutique asset manager specializing in alternative investments. We deeply value each client and approach their assets focused on extracting the highest value while affording the maximum protection.
