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Meeting You Where You Are!®
Quarterly Client Letter
January 2021
Dear Michael,

Your Account Information, Reports, and Stored Documents (including Billing Statements once processed for this quarter) can be accessed by clicking on the following link:
Once the login screen comes up, enter your email and password as usual. You will see your Dashboard summary and can use the tabs to see more detailed views of your accounts.

Also note that all reporting and account information (including Billing Statements) will only be provided through the above portal. If you are not currently set up please contact me soonest to ensure you have proper access.
Inauguration is behind us and vaccinations are underway
... but has the economy turned the corner?
After a tumultuous election period and challenging inauguration, we are now firmly into 2021 with a new team in charge in Washington. Biden is moving forward with much of his campaign agenda as fast as he can. Currently underway is more stimulus with hopes that it can be a bipartisan achievement, however the Biden Democratic camp is determined to go it alone, if necessary. While there is likely overspending in a number of areas, most economist agree the stimulus should err on the high side vs under spending. Is $1.9 Trillion too much? I don't know. In any case, for the economy to heal and full employment to return, small companies, local governments and individuals still need support of the Federal Government.

After the approval and ramp up of vaccination efforts, last week the number of US persons vaccinated exceeded the number of persons who tested positive for Coronavirus to date. This is a good milestone on the way to getting control over the virus.

Below you will find the link to the mABC Quarterly Commentary which does an excellent job of addressing the latest news about the pandemic as well as impacts on markets. In this edition we cover the following:

  • A summary of the 4th Quarter 2020 in "Global Market Performance" 
  • A view of the pandemic in "Coronavirus Update" 
  • A look at Fixed Income in "An Interest in Rates"
  • A look winners and looser in "The Post Pandemic World"
  • An outlook for the future in "Look Forward"

Read more by clicking: 4th Quarter 2020 Commentary
So, how did we do last year?

2020 was radical year in terms of market performance. After a strong start in Jan-Feb 2020, the market collapsed in March with the spread of Coronavirus worldwide and major market indexes fell about 30% . Then, defying gravity the US Markets rebounded mid year buoyed by the performance of the large tech sector supporting remote working and social engagement. While the economy fell into recession in the 2nd quarter it recovered quickly to return to growth, but the year still ended up the with negative 3.5% contraction of US GDP. Read more in Wash Post: GDP 2020 was the worst year for economic growth since WWII.

With all this volatility and turmoil, how did your portfolios perform? While each account is managed differently to meet individual cash reserve needs, the performance of mABC portfolio strategies summarized overall performance as follows:
Investment Strategy Returns 2020 Average

mABC Moderately Aggressive accounts 7.7%

mABC Moderate accounts 7.1%

mABC Conservative accounts 3.2%
The table below shows the approximate percentages for your accounts in each asset class as of the date of this newsletter. You might have noticed trade notifications as I moved into and out of the market during the last quarter. Markets stabilized somewhat after the approval of vaccines as hope for conquering the pandemic brightens.
  • Fixed Income Investments (now PIMCO Total Return PTTRX) serves as a counter balance to equity investments.
  • Equity investments are mostly in the broad global indexes ACWI and ACWV. Moderately Aggressive accounts also include selected markets sectors like Financials, Communications and Technology and other specific asset class investments like Small and Mid Cap funds and investments Emerging Markets.
  • Smaller accounts (less than $10,000) are invested in diversified funds AOA and AOM which hold a mixture of equity and fixed income funds. 
So what's the outlook? 
Assuming we continue to make progress against the Coronavirus pandemic I believe the market will continue to churn higher as the federal government moves to support the economy with monetary and physical stimulus. New Treasury Secretary and former Fed Chair Janet Yellen has spoken to the need to continue to invest in the economy and she along with current Fed Chair Jerome Powell believe going big on stimulus is necessary.

If the Biden administration is successful implementing pro job growth, large infrastructure projects (new roads, rural internet, etc) the economy should continue to grow and markets will reward investors with continued strong performance. If however, we see stalled congressional action like in the past, all bets are off!

As always, I will continue to monitor markets and make adjustments to your portfolios as conditions warrant. And I am happy to discuss our respective views in general and your account and investment needs specifically.
Michael.Andries@mABCLLC.com
+1.713.777.0260