.

Direct your investments

Sit ESG Growth Fund

to where standards matter.

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Direct your investments

Sit ESG Growth Fund

to where standards matter.

.

Direct your investments

Sit ESG Growth Fund

to where standards matter.

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Market Commentary
May 10, 2021

We continue to tilt investment portfolios toward secular and cyclical growth opportunities most levered to the upsurge in economic growth we expect over the next several quarters.  Accelerating economic activity, supportive federal policies, rising excess liquidity, positive fund flows, and improving corporate earnings support continued upward momentum in domestic equities.  Despite supply chain constraints, the U.S. economy is on pace for real GDP growth of around +11.0 percent in the second calendar quarter, followed by expected growth of about +5.0 percent in the third.

Earnings are now key to stock price appreciation, and in this respect, companies delivered in spades in the first calendar quarter.  Thus far, over 87 percent of S&P 500 constituents reporting financial results beat the consensus earnings forecast, the highest percentage in at least the last two decades.  As a result, bottom-up estimates for the S&P 500 suggest year-over-year EPS growth of +34 percent in calendar 2021, up from +26 percent at the end of March.  Consensus estimates also imply roughly +12 percent EPS growth in 2022, but these forecasts do not yet incorporate the potential drag of higher corporate taxes.  An upswing in M&A activity, share repurchases, and dividends provide added support to stocks.  Near-term risks/uncertainties include euphoric investor sentiment, mounting inflationary pressures, rising bond yields, potential earlier-than-expected tapering of asset purchases by the Federal Reserve, a continued deceleration in the pace of U.S. vaccinations, the spread of Covid variants for which current vaccines are less effective, the slow rollout of vaccines in other nations, escalating U.S.-China tensions, and adverse tax-related headlines.

For our latest full Global Investment Outlook & Strategy Update, download the .pdf document.

Sit Mutual Funds will continue to operate at the highest level during this outbreak, and we invite you to contact us with questions or concerns. You can reach us at 800-332-5580 or email us at info@sitinvest.com.  We will continue to post updates about market and economic developments on our website at www.sitfunds.com.

Sit Investment Associates – Current Operations

During this disruption, we have three primary goals: 1) Do what we can to protect the health and well-being of our colleagues and their families, 2) Continue to research and actively manage investment portfolios pursuant to our client’s objectives, and 3) Serve our clients by staying focused on their long-term goals.

Operationally, we have implemented our work from home procedures to accommodate the need of certain colleagues to be at home and to do our part to support the virus mitigation efforts.  Our associates are returning to work in accordance with government health and safety guidelines.  We are fully operational – effectively making investment decisions, executing and settling trades, maintaining client account records, and communicating with clients.

Conditions are changing quickly, and it is possible that our receipt of mail through the United States Postal Service could at times be delayed.  We recommend that shareholders conduct transactions online at www.sitfunds.com and select the Account Access option under the Account Management drop-down menu at the top of the page.

Please call us if you have any questions.

Thank you for investing with Sit Investment Associates.

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2020 Capital Gain
Distribution Amounts

Mutual funds are required to distribute net realized capital gains and income each year. These distributions were paid this year on December 17th (to shareholders of record on December 16th). This year’s distribution amounts are available by clicking here.