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Hello, I am George Padula, Chief Investment Officer, Modera Wealth Management. Thank you for joining us for our perspectives on 2020 and 2021, you know, back in February, early March I was with a friend and the virus was in the news and there were discussions about closing parts of the economy. We remarked to one another that if Disney world were to close, you knew it was going to be tough. Little. Did we know then, right. I want to share with you some slides on market returns for the year, and then our outlook and thoughts for the year ahead. As you can see here, small cap stocks are up 20% emerging markets up almost 19 large cap stocks, the S&P 500 up 18 technology. Healthcare work from home industries did tremendously. Well. It took a while for other industries and sectors and asset classes to get their footing international developed up about 8% for the year.
Us bonds up seven and a half. As we had a treasury rally high yield up seven municipals up for real estate down almost eight, tremendous improvements. After a dramatic drop in the economy, you can see here with the New York fed weekly economic indicators index, this dramatic drop at the beginning of the year, and this sharp recovery we focus in on the year alone. This other one goes back to 2008. If we just focus in on 2020, you can see how far we’ve come. There’s been a fair amount of positives this year. You know, the innovations, the vaccines, of course, you know, the healthcare care, the technology and the pulling together to solve problems. You know, this is impacting every facet of our lives and it’s just been incredible. And I don’t think we fully understand how truly changing this is going to be until years to come.
And it’s hard not to be positive as I think about it and looking forward for what’s to come. So where do we go from here? What we’ve been continuing to focus on those disciplines sound fundamental principles, and we’ll continue to do so. Liz Anne Sonders, chief investment strategist at Charles Schwab was in Barron’s this week and had two questions posed to her advice for 2021. And what strategies for this rapidly changing market. And she said there are two keys. Diversification is key sectors, market cap, geographies, asset classes within asset classes, just as important as rebalancing strategically trimming back on those areas that have outperformed adding to those that have underperformed. So you can catch a, she calls it that wave of upside when rotations happen. Those are the things you can control. Those are the things that you can focus in on the rebalancing, the diversification, the asset allocation, and our communications, the conversations we have with you. Those are the things that we’re going to continue to focus on today. And in the future going forward, I want to finish up with this quote from Eleanor Roosevelt, you gain courage and confidence by every experience you’re able to say to yourself, I’ve lived through this. I can take the next thing that comes along. This quote to me is all about optimism and confidence and looking forward.
What better do we have for 2021?
I want to thank you for the trust and confidence that you place in us in our services. And I want to wish you the very best of health and happiness for 2021.