U.S. equities closed higher last week after investors appeared to be more optimistic about the possibility of avoiding a recession. The NASDAQ outperformed the other domestic indexes, finishing 4.32% higher. Out of all the S&P 500 sectors, consumer discretionary (+6.4%) outperformed most, mostly fueled by large gains in Tesla, Inc. (TSLA) as Elon Musk spoke of his positive outlooks for the company. Technology (+4.1%) and communication services (+3.3%) also outperformed the other sectors, while health care (-0.8%) and utilities (-0.5%) underperformed modestly. Ultimately, the S&P 500 Index finished 2.48% higher. Economic data showed U.S. Real GDP rose 2.9% in 4Q22, slightly above expectations. Lastly, sovereign yields finished modestly higher last week, with the 10-Year and 2-Yeat U.S. Treasury yields finishing at 3.52% and 4.19%, respectively.
Sustainable investing has witnessed exponential growth over the past few years as investors have increasingly embraced companies that take action to address environmental and social issues. The ESGPLUS models are designed for investors seeking to gain exposure to those types of companies. These models provide access to three separate areas of ESG investing. The first is a Tactical, all-equity, a global strategy that focuses on companies that exhibit positive environment, social, and governance characteristics. The second is a Tactical, all-equity strategy that provides exposure to environmental themes including clean technology, energy, and water. The third is a Strategic fixed income strategy that provides exposure to various areas of the fixed-income market, such as investment grade and high-yield bonds, and asset-backed and mortgage-backed securities. By combining these three unique strategies, we are able to offer a full suite of ESG models that range from Aggressive to Conservative.
The information provided herein is the opinion of The Pacific Financial Group, Inc. (“TPFG”) a registered investment adviser, and may change without notice at the discretion of TPFG. Spotlight contains models managed by TPFG and represent TPFG’s opinion and evaluation of its models. All information is believed to be accurate but has not been independently verified and TPFG makes no warranties as to the accuracy of the information or any representations made or implied. The information should not be construed or interpreted as an offer or solicitation to purchase or sell a financial instrument or service. The information is for informational purposes only and should not be relied on or deemed the provision of tax, legal, accounting or investment advice. Past performance is not a guarantee future results. All investments contain risks to include the total loss of invested principal. Diversification does not protect against the risk of loss. Investors should review all offering documents and disclosures and should consult their tax, legal or financial professional before investing.
The indices are presented as broad-based measures of the equity, fixed income, and consumer markets. The indices are provided for comparative and illustrative purpose to provide a comparison of the model against the broader-based equity, fixed income, and consumer market. The indices are not intended to reflect the investment objectives of the model as the securities held within the model will differ in market volatility, concentration, investment objectives, and diversification among others from those of the indices. The indices are not managed, and returns do not reflect the deduction of fees, expenses, transaction costs or taxes that actual client accounts are subject to. Investors cannot invest directly in an index. Returns are not annualized for periods less than1 year.
Trailing Major Index Returns and YTD S&P Sector Returns are sourced from Morningstar Direct.
* Sourced from JPMorgan Asset Management, publicly available at https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/
All other economic and market data sources may include, and is not limited to:
Edward Jones, publicly available at https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-marketweekly-update
Goldman Sachs, publicly available at https://www.gsam.com/content/gsam/us/en/advisors/market-insights.html
Rowe Price, publicly available at https://www.troweprice.com/personal-investing/resources/insights/global-markets-weeklyupdate.html