The first quarter of 2021 was an event-filled few months. In recent weeks, the US stock market experienced a strong rally in the wake of the decline caused by the ongoing Covid - 19 pandemic. The first quarter saw a broad-based rally with increases in each of the economic sectors. The high levels of stock market volatility have lessened and stock market indices have risen to record levels.
The Rivertree project began in January of 2021 with a modest portfolio of $50,000. At the end of the third quarter, the portfolio has grown to a net value of $54,662 for a return of about 9.3%. In contrast, the S&P 500 increased about 5.8% during the first quarter.
Although Rivertree showed a sizable gain, it lags behind the increases of the most rapidly expanding stock sectors. The Rivertree portfolio focused on positions in XLB, XLC, XLE, XLF, XLI, XLK. The greatest single gain came from a long position in XLI, a modest loss resulted from a position in XLE.