Market Update—05/25/2021

Since our last update Feb. 9th 2021, stocks have steadily moved higher tacking on another +7.50%. That brings the total performance year-to-date of the S&P 500 to 12.50%. The majority of you are up slightly more than that as last years losers are this year’s biggest winners. The average stock both in the portfolio and the overall market continues to be slightly overvalued – as you can see from the Morningstar fair value chart below – thus bargains are more difficult to find.


© Copyright 2021 Morningstar, Inc

With the S&P 500 outperforming the rest of the world by nearly 10% annually over the past 10-years, it’s hard to imagine international stocks not playing catchup. As a result, global funds and stocks will be our primary emphasis going forward.

As for bonds, interest rates are still rock bottom with the 10-year US Treasury paying 1.60%. Record amounts of debt and an accelerating economy make these an unattractive choice.

So the plan is – add to global stocks and funds on market declines, trim overpriced stocks, stay the course with gold and keep some cash handy for uncertainty.

Thank you again for your confidence and trust. I appreciate you all very much and look forward to being of benefit and service to you. If you have any questions or concerns, please call me or my assistant Mary at 817-334-0706.


David Burgess

The information contained herein does not suggest or imply and should not be construed, in any manner, a guarantee of future performance and/or investment advice. Past performance does not guarantee future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by Burgess Investments), or product made reference to directly or indirectly on this newsletter or company website, or indirectly via link to any unaffiliated third-party website, will be profitable or equal to corresponding indicated performance levels. Returns are historical and based on data believed to be accurate and reliable. We believe the above information is reliable and true but cannot guarantee its accuracy.
David Burgess