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

June 8, 2021

U.S. equity market performance was basically flat in May as persistent global supply chain constraints, rising commodity prices, labor shortages, and the prospect of further fiscal stimulus amplified investor concerns about unchecked inflation.

We believe many of the global supply chain issues currently plaguing producers, and driving costs higher, will be largely resolved by late 2021 or early 2022.  Labor availability should also improve as pandemic fears ease and unemployment benefits expire, curbing the prospect of uncontrolled wage inflation.  We continue to believe the core PCE Price Index will moderate to the low +2.0 percent range by year end, giving the Federal Reserve the wiggle room needed to remain accommodative.

We remain constructive on U.S. stocks and maintain a pro-cyclical stance within investment portfolios.  We continue to invest opportunistically and added to select high growth stocks, especially within software and biotechnology, after an interest-rate-related selloff in higher PE stocks.  We also increased positions in some consumer holdings as a sharp improvement in employment/wage prospects augments stimulus.  Given the inflationary backdrop, we have tilted portfolios toward companies with pricing power, notably those within the industrial, chemical, transportation, and insurance sectors.

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.