The end of the year is upon us, so instead of the usual weekly market recap, I offer this metaphor to end the month.
Your investment strategy is a lot like a marriage. One day you may feel like everything’s going swimmingly. The next day, there might be an argument over who forgot to load the dishwasher. And even the best marriages and partnerships have moments where one or both partners look around and go, “Is this as good as it gets?”
The stock market, much like a marriage, has days of ups and downs. Just look at what happened within the last few weeks. During the first week of December, the Dow jumped 200 points, only for that gain to disappear a week later.1,2
Investors cheered an upbeat consumer spending report, and stock prices rallied again when home sales stayed near a 14-year high. But the enthusiasm faded on mixed news about the job market, and selling continued on concerns about the rollout of the COVID-19 vaccine.3
Trying to make sense of the market and the economy during a pandemic is like trying to determine the health of a long-term relationship based on one day. The market may be fickle or have a roving eye, but it’s important to remember that your investing strategy was created based on your goals, time horizon, and risk tolerance. If yours was not, or if any of those three factors have changed, let’s talk.
If you have any questions about what you’re seeing in the news, please give me a call. I’d welcome the chance to hear your perspective on “what’s next” for the economy.
1. CNBC.com, December 8, 2020
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
Markets & Marriage
December 29, 2020