Monthly Market Update:
Recap of October 2020
Election Day is upon us. With a year that has allowed the markets to hit all time highs and set records for rapid losses, everyone is wondering what will happen next.
I’m Eric Powell with RightPlan Financial. Let’s dive in and look at what the markets have done, what the rest of 2020 could look like and what we are doing for client portfolios.
To start off, let’s look at the numbers. For October, the S&P 500 was -2.66%, the Dow Jones Industrial Average -4.52%, Nasdaq -2.26%, MSCI EAFE -3.99%, MSCI Emerging Markets +2.06%, Barclays US Aggregate Bond -0.45%, Barclays US Corporate High Yield +0.51% and Barclays Municipal -0.30%.
October’s rough ride can primarily be blamed on the virus surge and looming fear of economic shut downs, along with the delayed stimulus and the upcoming election. The unpredictable year has taken its toll on the Dow Jones with a negative return so far this year, while the S&P 500 is positive and the Nasdaq is positive as tech stocks have soared during the pandemic.
After the election, the markets have the possibility of a boost with a pending stimulus that should get pushed through before year end, though the pandemic is still here and a continual increase in positive cases could take its toll on the markets.
With uncertainty in the near future, we are maintaining a long-term mindset with the market, but also keeping an eye on the short term. Our investment strategy is to never time the market, but we can do our best to prepare for what could come. With that said, we have rebalanced portfolios moving into November. The goal is to keep client portfolios aligned with their risk tolerance. Our tech holdings have done very well this year and a rebalance allows us to bring the portfolios back to where they should be. For our conservative portfolios, we have made tweaks with the fund line we carry to help limit losses if we see a downturn and all portfolios carrying bonds have been adjusted with a new bond fund that has been researched extensively and we are happy with what we have seen in the new bond fund.
For some, you may enjoy the insight into what I just discussed and for others who tuned out on all the market lingo, a quick summary of what I said is…..we are here for you and continuing to work hard to maintain long term growth on your investments.
Whether tomorrows election results brings happiness or frustration, know that Wednesday the sun will rise and set just as it always does. Make the best out of every circumstance and know that we are here for you whether it is to talk investment strategy or just be a listening ear.
Thank you for trusting RightPlan Financial.