DoubleLine’s Jeff Mayberry and Sam Lau wrap up 2021 with a breakdown of the Dec. 17-31 market week and performance summation for the year, a great period to own risk assets, buoyed by fiscal stimulus checks and the Fed’s accommodative policy. The S&P 500 Index finished the year up almost 29%, posting 70 record highs across 2021 and leaving little opportunity to buy the dip (3:54). On a sector basis, energy was the year’s best performer, up 53%, and the worst performer on a relative basis was communication services, up 16% (5:42). Large caps beat small caps (7:50), and growth stocks beat value stocks (9:26). Jeff and Sam review the performance of fixed income assets, noting that despite the Bloomberg US Aggregate Bond Index marking only its fourth negative annual return since 1976, there were strong returns to be found in nontraditional sectors (10:23). A look at commodities, where coffee was the big winner, and bitcoin rounds out the rundown on risk assets (14:44). A review of macro factors (20:08) leads to a look at 2022, with inflation and the labor market expected to be among the major issues next year (29:29). Happy New Year! This episode was recorded Dec. 31, 2021.
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