Watch the CPK Market Action Report: October 2020
Stocks stumble in September! Can Congress come to the rescue again or will the pending election and a rise in Covid cases prove much to handle?
Watch the full 3-minute Market Action Report now:
October 2020
Stocks dropped in September as investors worried about stalled fiscal stimulus talks in Washington, the upcoming election, and new coronavirus cases in Europe.
The S&P 500 Index lost nearly 4 percent, while the Nasdaq Composite declined just over 5 percent. The Dow Industrials dipped 2.3 percent.
After a strong rally in August, investor sentiment turned negative quickly as a drop in tech stocks dragged down the overall market.
The month had a few bright spots. A slight pick up in buyout deals and progress on a COVID-19 vaccine gave the bulls some cheerful news.
The market cut its deep losses as September came to a close, surging on the final two days of trading as legislators appeared to reopen fiscal stimulus talks.
In a challenging year, one strong sector has been housing, which has seen an uptick in consumer demand, partly thanks to lower interest rates.
Homebuilding and home sales have set new records in recent months, while homebuilder confidence is at an all-time high.,
Housing accounts for 15 percent of the nation’s gross domestic product, so investors will be watching to see if the sector can retain its momentum in the fourth quarter and into 2021.
Our investment models remain comfortably positioned with only 35% exposure to domestic equities. However, the sector exposure now includes Gaming, Healthcare, Auto and Building.
As a reminder, my current allocation is not a recommendation. I still expect heavy volatility to continue as we approach the election, address additional stimulus and a rise in Covid cases. Successful navigation through this environment will definitely require a fluid plan with all hands-on deck.
Regardless of what happens next, investors like you need to have a simple and yet solid financial plan that reduces RISKS, COSTS and TAXES while securing the necessary income you need to maintain your lifestyle throughout retirement.
If you don’t have a plan OR you’re not comfortable with the plan you have, call me today to get pointed in the right direction.
I’m Chad Kunc and that puts a wrap on the September 2020 Market Action Report. Thanks for joining me. It’s time for me to get back to the markets.
And that action starts, NOW!