3rd Week of November 2020 thoughts as we finish out this week…a few days late!
When you are looking at what sectors will outperform, the economy, and where we are in the current economic cycle, is everything. See the “gray mountaian” below…when the market is topping? Then, the gold section where we are moving into recession? Today, we are moving towards the Early Expansion: Covid is key! 😲Why does this matter to you? Each of the sectors of the S & P 500 are either over, under or fairly valued: the stock market is not a monolith…there are always places that are good values…it is never too late to buy.
Case in point to my comment above: not only does performance vary by sector, but by asset class! Small-cap, mid-cap, large-cap and international will zig while another “zags.” Add bonds and your pie has lots of pieces! 😊Why does this matter to you? Building a portfolio is like making a 7-layer chip-dip: not too much in any one sector, or asset class. The trick is to let diversification be the guide and create, and monitor, all year long!
The election is behind us…the question now is “How will this administration impact the stock market?” The things that impact the market fall into one of two categories: Economic Events or Market Events. Market Events do not typically have lasting impact…unless they turn into an Economic Event. 911 started as a Market Event but turned into an Economic event when global travel and spending stopped on a dime.
😲Why does this matter to you? Spend some time thinking back over the last 60 years and remember what was going on during the “dips.” It is not who is sitting in the White House…though the ability to manage in difficult times like 911 and the 2009 Financial Crisis, do matter. What matters is, the economy.
Skye Advisors 2.0 will have a busy 5 weeks! https://calendly.com/skyeadv/ask-julie-about
Constancy noun con·stan·cy | \ ˈkän(t)-stən(t)-sē