May Market Update

Friends,

Major equity indexes were mixed in May. The Russell 1000 Index and The Dow Jones Industrial average were up over 2.00%. The Nasdaq 100 Index finished the month 1.2% lower. Year to date the Russell 1000 is up over 18%, the S&P 500 12.60% and the Nasdaq 100 6.50%.

 Internationally, European markets outpaced the US markets in May. The Euro Stoxx 50 index, a measurement of Europe’s leading blue-chip index for the eurozone was up over 3%. The Nikkei 225 and Hang Seng are up 1.20% and 2.00% respectively.

 The S&P 500 and Dow Industrial Average touched all-time highs in May. Oil reached a 52-week high and gold climbed above 1900 per ounce.

 As we spoke about in our April newsletter, inflation concerns are still a point of concern for the markets.  Rising input costs, higher commodity prices and a tight labor market led to a choppy month of trading. To illustrate The Nasdaq 100 traded in a 7% in May, closing the month down only 1.20% Yields on US Treasury, corporate, municipal and mortgage bonds were largely unchanged in May.

 As we head into the summer, I wanted to share with you an interesting graph.  COVID has created a significant backlog in production.  The graph below compares a backlog of order index to customer inventories. In May it touched a record high.  Both indexes are reported monthly from the Institute of Supply Management.  This imbalance suggests production is likely to rise for an extended period.

COMPARES A BACKLOG OF ORDER INDEX TO CUSTOMER INVENTORIES

As always if you have any questions feel free to reach out.

Best,
Bob

This material is intended for general public use and is for educational purposes only.  By providing this content, Park Avenue Securities LLC is not undertaking to provide any recommendations or investment advice regarding any specific account type, service, investment strategy or product to any specific individual or situation, or to otherwise act in any fiduciary or other capacity.  Please contact a financial professional for guidance and information that is specific to your individual situation.  Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms.  Indices are unmanaged, and one cannot invest directly in an index. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investing in the bond market is subject to certain risks including market, interest rate, issuer, credit and inflation risk. Equities may decline in value due to both real and perceived general market, economic and industry conditions. `S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Each company's security affects the index in proportion to its market value Add Pinpoint # 2021-120675 Exp 05/22  

Source Bloomberg

Meet

Jeremy Suarez

Jeremy has been in the financial advisory business since 2005 after graduating from Fordham University’s School of Business. He joined Tomoro as a managing partner in 2014. During his tenure, Jeremy has consistently excelled as an advisor in both the personal household and business planning arena. As a managing partner, Jeremy also serves as a mentor to all associates and is hands-on in supporting Tomoro’s growth planning. He has completed various curriculums and certifications, such as New York University’s graduate studies in financial planning, is a Certified Exit Planning professional, and Investment Advisor Representative. He and his family reside in Colts Neck, NJ.

Registered Representative and Financial Advisor of Park Avenue Securities and Financial Representative of Guardian, AR insurance license #8401385 CA insurance license #0F94382

Schedule a Session

The S&P 500 Index is a market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market. The Hang Seng Index (HSI) is a market-capitalization-weighted stock market Index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong.

Indices are unmanaged, and one cannot invest directly in an index. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investing in the bond market is subject to certain risks including market, interest rate, issuer, credit, and inflation risk. Equities may decline in value due to both real and perceived general market, economic, and industry conditions.

Statistics sources from Central Bank Rates and Bloomberg.

2021-115741 Exp 2/23