The stock market (DJIA) finished October down for the 2nd month in a row, and except for the Russell 2000 (small company stocks) sits about where it did at the end of July. So far this year, the Dow is down about 8%, the S&P 500 is down about 6.5%, the NASDAQ is still up by over 18% and the Russell 2000 is still off by 7.8% in 2020.
It should surprise no one that the index filled with tech companies is up this year, while the traditional company stock indexes are off. COVID has had its effect on how we buy our goods and services, and the move to online buying has been substantial.
I would be remiss if I didn’t mention the election in the November issue of this newsletter in a presidential election year. But as I’m writing it on election day, the vote has not been counted and I have no idea who won. From what the news reporters say, we may not know for days or weeks.
So please forgive me of that.
Our goal is to bring to you, our clients and friends, information that is relevant to your investment portfolio, and helpful in your determination of what is right for your long-term portfolio. While a presidential election can have a short-term effect on the stock market, history has shown that policy that is passed by the congress and signed by the president is much more important, and long-lasting, as an indicator of what the market will do in the long run.