Sit Investment Associates provides quality investment management expertise in domestic and international growth equities and fixed income. Investment management services are offered across four channels: Separate Accounts, Private Investment Funds, Collective Investment Funds, and Mutual Funds. We take pride in serving as a true extension of our clients’ operations, providing highly individualized service in an increasingly challenging economic and financial environment.

We view investing as the practice of applying a consistent philosophy and decision-making process over meaningful time periods. In fact, the firm’s success is built on long-term client relationships, which in turn are built on a foundation of trust, commitment, understanding, and expertise.

The firm is owned by its seasoned investment professionals, who work hands-on in every aspect of the investment process and client service. We are 100 percent committed to achieving clients’ investment objectives, because our clients’ success results in our success.

Market Commentary

April 9, 2021

The recently passed $1.9 trillion American Rescue Plan Act, which brings total potential Covid-related U.S. fiscal and monetary stimulus to date to a staggering $12.8 trillion, has contributed to a much-improved economic outlook. The near doubling of weekly doses available following the FDA’s late February approval of J&J’s Covid-19 vaccine will also likely accelerate the path to herd immunity and a full reopening of the domestic economy. Consequently, we now project U.S. real GDP will rise +6.6 percent year over year in calendar 2021, up from our +4.4 percent estimate in January.

Bottom-up earnings for the S&P 500 are currently projected to grow by +27 percent year over year in 2021 and by +15 percent in 2022. The ratio of upward earnings revisions to downward revisions have plateaued at a high level of 2.4 times but largely indicate continued momentum upward in forward estimates. The earnings upturn is broad-based, though the more cyclical/ economically sensitive sectors (e.g., industrials, consumer discretionary, materials, financials) have the highest projected growth in 2021.

We continue to position portfolios toward traditional growth sectors as well as those most levered to the surge in economic growth we expect over the next several quarters. As the recovery matures and the rate of change in economic growth decelerates, we expect a rotation back to secular growth stocks from cyclical growth and value.

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

Sit Investment Associates 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 612-332-3223 or email us at info@sitinvest.com.  We will continue to post updates about market and economic developments on our website at www.sitinvest.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.

Please call us if you have any questions.

Thank you for investing with Sit Investment Associates.