The Financial Quarterly

1st Quarter 2021


https://www.myeaglewealth.com
Eagle Wealth Management
(541) 330-0220

The first quarter of 2021 had a little bit of everything: politics, bubbles, meme stocks, rallies, and sudden drops. Let's take a look at how markets performed and what we might look forward to in the months to come.

Looking Back

How Did Markets Perform Last Quarter?

S&P 500

The broader U.S. market grew in Q1 on stimulus, optimism, and the economic recovery.1

NASDAQ

The tech-focused NASDAQ rallied on a new technology boom, but pulled back at quarter's end on interest rate fears.2

DOW 30

Blue chip stocks soared in Q1 on expectations of economic growth and stimulus.3

Looking Ahead

What Can We Expect in the Months Ahead?

U.S. Economic Outlook

Negative Positive

Equity Outlook

Negative Positive

Consumer Sentiment

Negative Positive

Labor Market

Negative Positive

Business Outlook

Negative Positive

Fiscal Policy

Negative Positive
"Despite continued challenges, markets had a strong performance in Q1. While uncertainty remains, we expect continued economic growth this quarter."

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Bottom Line

Key Takeaways for Savvy Investors

Despite a lot of uncertainty around business reopenings, vaccination rates, and economic growth, equities delivered a solid performance last quarter. Looking back, while it's easy to focus on the quarter's overall performance, let's not forget that there were many dips and rallies along the way.

Bottom line, we can expect more volatility and uncertainty this year. After nearing record highs, it would not be surprising to see a market drop in the second quarter.

What lies ahead? A popular survey of economists suggests that the economy could grow ~7% this quarter as the economy continues to pick up steam.4 However, there are many variables and uncertainties baked into those projections: vaccination timelines, consumer spending, new government regulations, and business expectations.

Overall, we're cautiously optimistic about where the economy and markets will go this quarter. However, we're also keeping a close eye on market conditions, as continued uncertainty could drive sudden changes.

Questions? Please reach out. We'd be happy to chat.


Eagle Wealth Management
(541) 330-0220
info@myeaglewealth.com