In November, the Dow experienced its best month since
1987, while the S&P 500 and Nasdaq indexes enjoyed their best month since
April of this year.1
With the election behind us and a vaccine on the
horizon, the stock market has plenty to celebrate. Many consumers used the
pandemic period to shore up their savings, which bodes well for their
prosperity in the coming year. There is a low chance of increased taxes or
massive reforms given the divide in Congress, and while interest rates remain
low, the home-buying market is poised to soar on renewed consumer confidence.
All of these factors may be historically good news for investment markets.2
The stock market increases 82% of the time in the
first year of new presidential terms,3 and the S&P 500 has
averaged 11.7% returns in the first year of every presidential term since the
end of World War II, regardless of party affiliation. Furthermore, the S&P
500 has averaged 15.6% returns with Democratic presidents compared 10% with
Republican presidents. Industries like technology, health care, financials and
industrials tend to thrive under a Democratic president.4
Despite jobs and economic growth taking a hit in 2020, that fortunately wasn’t reflected in the stock market. For more insight on how to plan for the coming year, feel free to reach out to one of our financial advisors for a review.
We take pride in
assisting our clients with incorporating all aspects of their life into their
Retirement Roadmap 360®. Take control of your financial future
and give us a call at (734) 769-1719 today to see how we may be able to help you!
1 Matt Egan. CNN. Nov.
30, 2020. “Trump said the stock market would crash if Biden won. The Dow just
had its best month since 1987.” https://www.cnn.com/2020/11/30/business/stock-market-dow-jones-trump-biden/index.html.
Accessed Nov. 30, 2020.
2 Jeremy Siegel. Knowledge@Wharton. Nov. 21,
2020. “Jeremy Siegel: What’s Ahead for the Stock Market?” https://knowledge.wharton.upenn.edu/article/siegel-markets-economy/.
Accessed Nov. 30, 2020.
3 Mark Hulbert. Marketwatch. Nov. 28, 2020.
“Opinion: Here are your odds that stock prices will be higher at the end of
2021.” https://www.marketwatch.com/story/here-are-your-odds-that-stock-prices-will-be-higher-at-the-end-of-2021-2020-11-24?mod=MW_section_top_stories.
Accessed Nov. 30, 2020.
4 Savita Subramanian. Merrill Lynch. Oct. 8,
2020. “The Markets and Presidential Elections.” https://www.ml.com/articles/market-volatility-presidential-elections.html#financial-research-and-insights.
Accessed Nov. 30, 2020.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
Investment Advisory Services are
offered by Imber Financial Group, LLC., a Registered Investment Adviser firm.
Insurance services are offered through Imber Wealth Advisors, Inc. Imber
Financial Group, LLC. and Imber Wealth Advisors, Inc. are affiliated companies
No comments:
Post a Comment