Great Moves in MACM Portfolios Last Week!

By Mitchell Anthony

August 30, 2021


Last week was a terrific week for the markets and for MACM portfolios. MACM’s dynamic growth portfolio (DG) advanced 2.75% compared to 1.6% for the S&P 500.  Recent additions to the portfolio led the advance with China  (CHIQ) returning 4.3% last week.  The FAANG stocks which are heavy in our portfolio, had a great week advanced approximately 3%.  FB +3.6%, AMZN 4.7%, AAPL +.4%, NFLX +1.8%, GOOGL + 4.8%.  Growth portfolios in general did better than value as expectations for a strong rebound in the economy with boomy growth continued to wane from the minds of investors, driving money back to long-term secular growth names like the FAANG.   SIFI’s (sexy, innovative, fragmented, industries) also did well as investors worry less about rising interest rates and more about owning names with strong growth characteristics.

On the economic front we had some strong data supporting the Fed’s desire to keep interest rates at zero.


Existing Homes sales were better than expected, coming in at 2% versus estimates of -.5%.  New Home sales were better than expected as well with growth of 1% versus estimates for a decline of – 3.1%.  Durable good orders were flat as expected as the sector continues to fall from the mountain it had climbed during the pandemic.

Jobless claims of 350k was aligned with expectations and another sign that the economy continues to be weaker than expected.  Second quarter  GDP was 6.6% a bit softer than the survey of 6.7% but still a huge number, but only this big because of the rebound from the pandemic lows for production and consumption, and not really growth that can continue at anything close to this pace.

Personal Income numbers were higher than expected with growth of 1.1% versus the survey of .3%.   Personal spending numbers came in almost exactly as expectations had foreseen with .3% growth compared to expectations of .4%.

The big news of the week regarded the Pow Wow that the central bank had with other Federal Reserve governors and economists.  Chairman Powell was clear that the Taper he has planned, where he will reduce Billion dollar monthly purchases of government bonds, will begin no sooner than the end of the year and the pace has yet to be determined.  All of his statements made it clear he has no plans to raise interest rates in the immediate future. Powell will error on the side of accommodation.

Further news regarded China and the statement by the central bank spokesman that the PBOC has plans to continue to be accommodative with monetary policy and has specific interest in supporting the needs of the tech Sector and consumer areas so they can be competitive in the world with innovative products and services.


This week we will get some important reports as well on the progression of the US expansion. Tomorrow we get a report on residential housing from Case Shiller, the nation’s most respected forum for measuring the progress of residential housing.  We also get news on the status of the manufacturing sector, factory orders, consumer confidence, and another big report for employment.