The Tactical Allocation Portfolio (TAP) remained true to its current allocation over the course of a historically wild week in domestic equity markets. More on that below…
Treasury yields were little changed last week despite several economic developments. The U.S. economy continued its rebound in the second half of last year, with real GDP growing at a 4% annualized rate in the fourth quarter after growing at a 33.4% rate in the third quarter. Despite rebounding in the second half, the U.S. economy contracted 3.5% in 2020, which is the largest annual decline on record dating back to 1948. The Fed left rates unchanged last week, as expected, keeping monetary policy loose in an effort to boost the economy. Fed Chairman Jerome Powell cited a moderating recovery in recent months and said, “The pandemic still provides considerable downside risks to the economy.”
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