Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

September 2021
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 lost 4.69%* in September.  The S&P 500 fell 4.76% and the NASDAQ Composite fell 5.31%. These were the first noteworthy monthly losses this year for the indices, and for the Fund.  Most of the damage hit in the last trading week, when the S&P 500 lost over 3% and the NASDAQ Composite lost 4%.

During September, we increased positions in the health care sector and reduced positions in the technology sector.  We also increased our short position hedge in the SPY ETF.  We finished the month at about 90% net long, down from about 96% in August.

 

 

 

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

Some may recall that all market sectors except energy gained ground in August.  In September the pattern reversed, as energy stocks rose and all other sectors fell.  Materials stocks (chemicals, metals, mining, etc.) were the worst performers.  Value stocks outperformed growth stocks. With the exception of the last week of trading, volatility was modest.

 

 

 
Macro Overview

Macro Overview

September data on manufacturing and retail sales showed gains, while employment and housing were weak.  Covid-19 cases spiked sharply, with the 7-day average rising to about 160,000 from a pandemic-low 12,000 in June.  Daily deaths rose to 2,000 from a low of 200 in July.  Inflation continued at an elevated rate.  The Conference Board indicated that Covid-19 and inflation impacted consumer confidence, which continued to slide in September.

The Fed lowered its forecast for 2021 GDP growth from 7% to 5.9%, but raised its forecast for 2022 from 3.3% to 3.8%.  The Fed also confirmed that it was likely to announce “tapering” (i.e., gradually ending) its bond-buying program at its November meeting, with the process to start in December and conclude by mid-2022.  The Fed’s Open Market Committee, which determines interest rates, now appears to be about evenly split on the possibility of an initial interest rate hike in 2022.

 

 

 

 
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.