The Impact of a Biden or Trump Presidency

I’m not allocating much space to this column to discuss the past six months. I think we might all agree that it will be regarded as one of the most tumultuous periods in history, if not in our lifetimes. Like you, I hope and pray that the next 6 months will be dramatically better than the last, in both financial markets and society in general.

July 10, 2020 Weekly Market Recap

The Nasdaq Composite was where most of the action was this week, as it rose 4.0% and closed at a record high in four of the five trading sessions. The S&P 500 rose a respectable 1.8%, followed by a 1.0% gain in the Dow Jones Industrial Average. The small-cap Russell 2000, however, declined 0.6%.

Is Value Investing Dead, Again?

Given the dramatic underperformance of value stocks (vs. growth stocks) in recent years, it's understandable that people would question the validity of the strategy, perhaps believing that the value "premium" has vanished. But observers of market history know that value faced similar death sentences previously, only to stage a dramatic comeback and deliver spectacular returns.

Negativity Sounds Sophisticated

Have you ever noticed how negativity sounds sophisticated? This is especially true when talking about investing and the financial markets. Think about it - it's true. Many investors simply tune out the person always saying, "the market will recover" or "staying invested is the best course." The optimist investor risks being called a Pollyanna or unsophisticated.

Giant Firms Atop Market Is Nothing New

A top-heavy stock market with the largest 10 stocks accounting for over 20% of market capitalization and a marquee technology firm perched at No. 1? This sounds like a description of the current US stock market, dominated by Apple and the other FAANG stocks, but it is actually a reference to 1967, when IBM represented a larger portion of the market than Apple at the end of 2019 (5.8% vs. 4.1%).

Two Market Visuals I Found Interesting

As the 2020 crazies continue, I just found these two market visuals interesting and wanted to share them with you (courtesy of The Visual Capitalist). They are not entirely "YTD" but close enough.

Two Economic Fears Are Now Reasons for Optimism

While there are still many challenges with COVID-19, there are also reasons to be optimistic. From a public health perspective, without diminishing the human and societal toll this pandemic has taken, the current trajectory would have been among the best-case scenarios predicted by experts only three months ago.

June 19, 2020 Weekly Market Recap

Stocks recover some losses this week. The S&P 500 advanced 1.9% this week, recouping some losses from the prior week. The Nasdaq Composite outperformed again with a 3.7% gain, followed by the Russell 2000 (+2.2%) and Dow Jones Industrial Average (+1.0%).

The Fed’s Guidance and Market Volatility

The stock market is experiencing renewed uncertainty and volatility only days after it recovered its year-to-date losses. Many investors are justifiably concerned about the pace at which the market recovered and the ongoing COVID-19 crisis around the world.

June 12, 2020 Weekly Market Recap

It was a wild ride to say the least! The stock market started the week hitting a key milestone - the S&P 500 turned positive for the year, and the Nasdaq Composite rose above 10,000 for the first time - but succumbed to profit taking that handed it its worst week since March. The S&P 500 fell 4.8%, the Nasdaq fell 2.3%, the Dow Jones Industrial Average fell 5.6%, the Russell 2000 fell 7.9%.

Jobs Surprise and the Recovery

The latest jobs report is a positive (and huge) surprise for the economy. It shows that rather than losing an expected 7.5 million jobs in May, the economy gained 2.5 million. The unemployment rate also fell from 14.7% to 13.3% while the under-employment rate ticked down too.

June 5, 2020 Weekly Market Recap

It was a huge week for the market, as stocks were boosted by the May employment report. The S&P 500 rose 4.9%, closing just below the 3200 level on the back of improving economic data, recovery optimism, and a fear of missing out.

How Housing Prices Affect Economic Recovery

With the economy slowly reopening across the country, the question remains: will consumers feel confident enough to spend? Or will they wait and see, effectively delaying the recovery? While it may take months for the economic data to reveal exactly how consumers feel, there are several indicators today which may be helpful.

May 29, 2020 Weekly Market Recap

Broad-based gains lift the S&P 500 back above its 200-day moving average. The stock market extended its rally this week on continued optimism about an economic recovery and a fear of missing out on further gains. The Dow Jones Industrial Average outperformed with a 3.8% gain, followed by the S&P 500 (+3.0%), Russell 2000 (+2.8%), and Nasdaq Composite (+1.8%).

When the Economy & Stocks Completely Diverge

Do you find it puzzling when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the stock market? You’re not alone. The last few weeks have produced many examples of a stark contrast between stock market performance and economic indicators. So why the apparent disconnect?

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Monthly Market Update: Rising Treasury Yields Cause Stocks & Bonds to Trade Lower

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