HIGHLIGHTS

Once again, the S&P500 confounded the pundits in the month of October. The consensus view (at least on mainstream media) was that October would be a volatile and sharply down month. This was not the case as the large cap index stayed in a narrow range and slowly grinded higher most of the month with a dig on Halloween to end the month at 5,705.45, down 0.91% for the month and up 20.10% YTD, excluding dividends. The Wellvest H&W Index had a great showing, up 5.56% for the month led by the very strong performance of Peloton (PTON), up 67.05% for the month, Laird Superfoods (LSF) up 48.23% for the month.

THE DEAD AWAKEN

Nope, not a Halloween movie title, just an acknowledgement that a few health and wellness companies that were on the verge of the abyss have clawed their way back. Peloton (PTON) is up over 67% for the month (24.57% YTD) due to positive comments by high profile investors and a solid earnings report of a very small loss which was above expectation. Additionally, the appointing of a new CEO (the third CEO since its public debut) and Peloton’s loyal customer base were identified as catalysts for the stock’s turnaround. Laird Superfoods (LSF) continues to defy expectations; the stock is up 648.64% YTD and 48% alone this month. While this is impressive, the valuation at less than 2x revenue is not outrageous for a CPG company. While the top-line growth is accelerating quarterly, what is more important is that the company has done a yeoman’s job of increasing gross margins, cutting losses and improving cash flow. If management can keep the momentum, profitability should not be far behind. Nice to see that fundamental financial performance is rewarded by investors.

H&W INDEX WINNERS and LOSERS – YTD

• Top Five Winners

• Top Five Losers