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March 2021

Market Update

(all values as of 06.28.2024)

Stock Indices:

Dow Jones	39,118
S&P 500	5,460
Nasdaq	17,732

Bond Sector Yields:

2 Yr Treasury	4.71%
10 Yr Treasury	4.36%
10 Yr Municipal	2.86%
High Yield	7.58%

YTD Market Returns:

Dow Jones	3.79%
S&P 500	14.48%
Nasdaq	18.13%
MSCI-EAFE	3.51%
MSCI-Europe	3.72%
MSCI-Pacific	3.05%
MSCI-Emg Mkt	6.11%

US Agg Bond	-0.71%
US Corp Bond	-0.49%
US Gov’t Bond	-0.68%

Commodity Prices:

Gold	2,336
Silver	29.43
Oil (WTI)	81.46

Currencies:

Dollar / Euro	1.06
Dollar / Pound	1.26
Yen / Dollar	160.56
Canadian /Dollar	0.73

Portfolio Overview

Ocean Park Investors Fund lost 0.15%* in March, while the S&P 500 gained 4.24% and the NASDAQ Composite gained 0.41%. The fund’s consumer-oriented stocks performed well, and in some cases extraordinarily well (Williams Sonoma up 36% and RH up 22%), but these gains were offset by broad declines in the fund’s technology and biotech positions.

During February, we increased positions in the consumer discretionary and service sector and the financial services sector. To maintain a relatively constant market exposure, we balanced these purchases by increasing our short position in the QQQ ETF. The result was that we finished the month at about 92% net long, up from about 90% in February.

Daily updates on our activity are available on our Results Line, at 310-281-8577, and current information is also maintained on our website at www.oceanparkcapital.com. To gain access to the site enter password opcap.

*These results are pro forma. Actual results for most investors will vary. See additional disclosures on page 4. Past performance does not guarantee future results.

Equity Overview

Equity Overview

March saw dramatic sector rotation in the stock market. Utilities were the weakest sector in February but the strongest in March. Energy was the strongest in February and among the weakest in March. Most significant for our portfolio, technology was the worst performer in March.

Equally significant, and continuing the trend since January, value stocks far outpaced their growth counterparts. Mid-cap and small-cap growth stocks were hit particularly hard and sustained meaningful losses.

Volatility was substantial in the first week, when the S&P 500 moved more than 1% in four of five trading days, but diminished over the balance of the month.

Macro Overview

Macro Overview

Economic data reported in March was generally positive as manufacturing, factory orders, and employment numbers all showed strength.

The Commerce Department raised its estimate of 4^th quarter 2020 GDP growth to 4.3%, indicating that economic recovery was underway at the end of last year. That will be reinforced by the $1.9-trillion American Rescue Plan, passed by Congress and signed by the president in March. And it will be turbocharged if the infrastructure legislation proposed by the Biden administration is enacted anywhere near its $2-trillion price tag.

The Fed maintained short-term interest rates near zero. While some Fed governors have suggested that those rates could rise next year, Chairman Powell has insisted that there will be no rate increases until the economy reaches full employment and inflation rises above 2% and stays there. In his view, those conditions will not be met until 2023 at the earliest.

Additional Disclosures

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets. Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.