Q4 Index Rebalance Update

October 1^1st, 2021 Rebalance Highlights

The U.S. and global economy experienced rather stable growth powered, in large part, by government interventions in the economy.  There was a partial recovery of business activities and consumer confidence across the last quarter while warning signs in high growth in Consumer and Producer Prices suggested that there may be challenges looming.  U.S. markets were rocked by small fluctuations at the beginning of September because of the invertor’s pessimistic view about China’s real estate market as well as the Fed’s future monetary stimulus policies. While S&P 500 fell 1.7% on September 19^th for the worst day since May, there is no further sign signaling that the turmoil would continue as the market rebounded quickly after the sell-off.  Investor sentiment – influenced by the Fed, by the departure of two Fed Presidents, China intervention in its credit challenges and other related risks – warns of 4^th quarter volatility.

Moving into Q4 2021, the weights of the Electronic Technology sector has slightly decreased compared to their weights at the beginning of Q3 2021. However, the sector still represents over 20% of the total weights for the U.S and Global indexes. It is noticeable to witness the weight increase in the Communication sector for both the U.S. and Global Index for 2021 Q4. The weight increase for this section is mainly contributed by the strong performance of AT&T and Verizon during the last quarter.

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