As we approach the Election this coming Tuesday, it’s important to reflect on what’s happened since the beginning of 2019. In 2019, the markets seemingly went straight up with very little volatility (not normal) and the beginning of 2020 continued that trend. Then Covid-19 happened and turned our world upside down. As the Market battled back from the historic downturn earlier this year, those in the investment community expected continued volatility. Rising Coronavirus cases both in the US and Europe, the delay on additional stimulus from the government and the uncertainty over the Presidential Election converged as we approach November.
Historically, October’s been the most volatile month for stocks. This year is no exception. While the market climbed early in the month, it stumbled recently as the S&P 500 shed 4.15% over the last 5 days and went negative for the month. The primary driver of the Market's upswing after Covid was Technology, and is also the primary cause of the recent downturn. As Tech valuations were stretched, earnings results came into focus. Of the four major Technology companies (Apple, Amazon, Google and Facebook) only Google’s earnings results were met with a positive reaction.
To say this election cycle is the most polarizing we’ve seen in recent years would be an understatement. Total 2020 election spending topped a colossal $14 billion - which doubled the amount spent in 2016. With the amount of funds being poured into ads - whether it be social media or network TV commercials - it’s obviously difficult to avoid being distracted and emotional.
Primarily, we want you to know if you have concerns or just want to have a conversation, by all means, call us. We are in front of this all day, every day and our collective experience can help you keep perspective. If you have friends or family that want to reach out, we’re always appreciative of referrals from clients - it’s the biggest compliment we can receive.