The start to 2021 was eventful for our team at Human Investing. Since the beginning of January, we watched the markets and headlines respond to the capital siege, the GameStop phenomenon, and another stimulus bill. Now that Q1 2021 is over, our team is sharing five of our favorite charts we have seen circulate this quarter.  Enjoy!  

Chart 1: Gamestop

January 2021 was the GameStop month. Even though it seems like this frenzy is over, we expect the GameStop phenomenon to remain relevant in the months and years to come. We are sharing a simple chart that captures both the price spike and trading volume spike.

While there are many takeaways from this short squeeze, one important reminder is to always keep your investment strategy the forefront of your decision-making. When will you be spending your dollars? What will the dollars be spent on? Remember that both your savings and your investment strategies are likely different from your neighbors, your headlines, and your influencers.  

Chart 2: Bull Markets

This chart highlights the annualized returns of recent bull markets.  As illustrated at the bottom, 2020 was an extraordinary year for market returns with an annualized return of 79.4%. This annualized return was not predictable, but it shows the importance of staying invested during a market downturn.

What does this mean for you? Do not take your investment returns this past year for granted! If you have created an investment strategy, stick to your game-plan. Past results do not guarantee similar future returns.

Chart 3: Price Changes

If you attended one of our group presentations recently, then you may have already seen this inflation chart. As illustrated in this chart, we want to emphasize that hospital services and college tuition are 165% more expensive today than in the year 2000. Let this chart be a reminder to plan for these big expenditures. Also, next time you watch TV – give it some appreciation. TV’s are a prime example of a technology that has not only gotten smarter and faster, but also more affordable over the years.

Chart 4: U.S. Savings Rate

This chart visualizes the U.S. Savings Rate before the pandemic, during the height of the pandemic, and the savings rate five months after the stay-at-home orders were released in the US. Notice that the precautionary savings increased significantly in April and May 2020, but has decreased ever since?  We encourage you to review your precautionary or “emergency savings” and to contact our team to strategize ways to make it happen.

Chart 5: Home Sales

As Portland residents, we know how difficult it is to buy a home here. According to Redfin, the median sale price in Portland is up 22.4% year-over-year and the median days on the market is down 67.5%. While this may be a favorable scenario for current home sellers, it is obviously a distressing situation for home buyers. We recommend reading the New York Times article for a full analysis on the national housing inventory and reasons why the number of homes for sale has plummeted.

That concludes our Q1 2021 Charts post. We promise to post our favorite charts from Q2 2021 this summer!  

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