Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

March 2022
Market Update
(all values as of 07.29.2022)

Stock Indices:

Dow Jones 32,845
S&P 500 4,130
Nasdaq 12,390

Bond Sector Yields:

2 Yr Treasury 2.89%
10 Yr Treasury 2.67%
10 Yr Municipal 2.27%
High Yield 7.50%

YTD Market Returns:

Dow Jones -9.61%
S&P 500 -13.34%
Nasdaq -20.80%
MSCI-EAFE -17.07%
MSCI-Europe -18.52%
MSCI-Pacific -14.20%
MSCI-Emg Mkt -19.34%
 
US Agg Bond -8.16%
US Corp Bond -11.61%
US Gov’t Bond -9.13%

Commodity Prices:

Gold 1,782
Silver 20.32
Oil (WTI) 98.35

Currencies:

Dollar / Euro 1.01
Dollar / Pound 1.21
Yen / Dollar 135.01
Canadian /Dollar 0.77

Portfolio Overview

Ocean Park Investors Fund rose 0.24%* in March, while the S&P 500 rose 3.58% and the NASDAQ Composite rose 3.41%.  Modest gains in most of the portfolio were largely offset by losses in financial stocks.

During March, we reduced positions in the consumer discretionary and service sector and the technology sector.  We finished the month at about 92% net long, down from about 95% 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

Stocks rebounded in March from their February lows, as most sectors gained ground.  Utilities, energy, and real estate stocks were strongest and financials were the weakest. No trend was apparent between growth and value stocks, or among large, medium, and small cap stocks.

Volatility was dramatic, as the S&P 500 moved more than 1% on 14 of 23 trading days during the month.

 

 

 
Macro Overview

Macro Overview

Economic data reported in March was mixed.  Employment was strong as U.S. employers added 678,000 jobs and the unemployment rate fell to 3.8%.  (Employers have added at least 400,000 jobs per month since May 2021, the longest streak on record.)  Manufacturing showed growth, retail sales were higher, and consumer confidence improved.  But durable goods orders declined and housing was weak as mortgage rates increased.  In addition, inflationary pressures persisted as the Consumer Price Index rose 7.9% and set another 40-year record.

As expected, the Fed raised the benchmark interest rate by 0.25%.  It also indicated that it would be raising rates at each of its remaining six meetings this year.  In addition, the Fed officially ended its quantitative easing policy and suggested that it will soon begin to sell bonds and reduce its record $9-trillion balance sheet.

Meanwhile, the war in Ukraine continued to dominate headlines.  Its precise economic damage cannot be predicted but commentary suggests it will be substantial.  Ukraine could sustain as much as a 40% hit to its GDP this year.  Russia is confronting default on its debt and has been effectively shut out of world trade—with the exception of oil exports, which the EU may be about to sanction.  Prices of grain and fertilizer—of which Ukraine and Russia are important exporters—have spiked, and threaten food insecurity in numerous undeveloped countries.  And both the World Bank and the International Monetary Fund have lowered their global growth projections significantly.

 

 

 
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.