Watch the CPK Market Action Report: November 2020

Stocks stumble again in October as a second wave of Covid-19 cases takes hold in the U.S. and investors adjust their portfolios ahead of the Presidential election. Will election results offer markets a rebound or will Covid-19 steal the show once again?

Watch the full 3-minute Market Action Report now: 

November 2020

Inaction on a fiscal stimulus bill and rising COVID-19 cases, both here and abroad, put pressure on stock prices in October.

The Dow Industrials, which have lagged much of the year, dropped nearly 5 percent. The S&P 500 Index fell about 3 percent while the NASDAQ Composite slipped a little more than 2 percent.

The theme moving markets was the new fiscal stimulus bill, which many believe is needed to keep the recovery moving. When talks appeared on track, stocks rallied. When negotiators broke down, stocks fell.

As hope for a stimulus deal faded, a surge in COVID in the U.S. and Europe added to souring market sentiment.

As the month came to a close, many companies reported solid earnings for the third quarter. But the market seemed overwhelmed by macro issues, with selling accelerating in the final week of trading.

The election results will take center stage this month.

Should President Trump get reelected, investors would expect him to follow similar policy initiatives during his second term. If former Vice President Biden wins, investors may be listening closely to public statements and potential cabinet appointments to gain insight into his policy priorities.

Regardless of who wins, the market may eagerly await signs of the timing, size, and elements of a new stimulus measure, as anticipated for several months.

For the month of November, our models are comfortably positioned with just 35% exposure to equities. While our current sector focus is on Tech, Consumer Cyclical, Healthcare, Communication Services, Industrial and Basic Materials, the final election results will most likely impact our sector focus and overall exposure to equities.

As a reminder, my current allocation is not a recommendation. Regardless of what happens next, investors like you need to have a simple and yet solid financial plan that reduces RISK, 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 November 2020 Market Action Report. Thanks for joining me. It’s time for me to get back to the markets.

And that action starts, NOW!