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

February 8, 2021

Calendar fourth quarter 2020 corporate earnings are off to a promising start, with over 80 percent of S&P 500 Index constituents beating consensus thus far (≈ 45 percent have reported). Underpinned by swelling fiscal stimulus, highly accommodative monetary policy, and an impending return to economic normalcy (thanks to Covid-19 vaccines), we forecast U.S. real GDP growth will rebound +4.4 percent in 2021 from a -3.4 percent contraction in 2020. Accordingly, bottoms-up EPS forecasts for the S&P 500 Index continue to rise – expectations are now for +24 percent EPS growth in 2021 and +16 percent in 2022. As the virus is brought under control, a wave of pent-up demand, inventory restocking, and business investment should take hold and drive additional EPS upside for well-positioned companies.

With investor enthusiasm at historical highs and overall stock market price-to-earnings multiples now discounting a lot of good news, stocks are vulnerable to pullbacks on disappointments. Another wave of infections, setbacks in vaccine delivery/uptake, and the emergence of a virus variant that renders current vaccines less effective remain key risks to the outlook. However, we remain constructive on U.S. equities over the intermediate term and think participation in stock market gains will continue to broaden beyond large-cap tech stocks. While lingering uncertainties support continued diversification, we have moved portfolios progressively toward a more pro-cyclical stance.

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.