Each day cases are rising, cities are starting to shut down non-essential businesses, and winter is now in the front-view window! We should expect the positive economic data we’ve been witnessing the past couple of months to subside, for the time being. Add in the fact that we won’t know the balance of political power until January 5th, 2021 (Senate run-off), and when we’ll receive additional stimulus.
Current uncertainty is being “trumped,” (I’m a pinochle player), by Covid-19 vaccine optimism. Investors can now see an end to this pandemic whereas economic activity can hopefully move forward.
Investors seem compelled to push the markets higher believing economic activity and corporate profits will rise next year. I do believe this pandemic will end up in the rearview in 2021. I do however expect a little turbulence, at least for the economy, between now and then. The markets on the other hand, at least for now, are looking beyond the next few months.
If your financial planning time horizon is beyond next summer, which it should be, maintaining your well diversified portfolios should prove once again to be prudent.
Markets for the Week
Markets were mixed last week with the Dow Jones & S&P 500 both down under 1%. The Nasdaq inked out a gain of .25%. Leaders for the week were again, Small Caps as the Russell 2000 moved higher by 2.38%.
Over the pond, International Stocks were up 1.8% on average.
Bond yields fell last week as the weekly unemployment claim data was higher than expected. The 10-year US Treasury yield fell back to .83%.
Medicare/Social Security Annual Letters
Those receiving Social Security Retirement Benefits and/or Medicare should be receiving annual notices explaining your benefits and health care premiums for 2021. Please make sure you read them immediately. I am now assisting 3 clients in correcting mistakes they received on their annual notices. Please do not delay if you need assistance.
Vaccine optimism is supporting our markets and overall optimism. Even with cases now rising to all-time highs, the thoughts of returning to normalcy should be viewed with optimism. Soon, many of our questions should be answered.
Keeping a well-diversified portfolio has proven beneficial and should do so for the foreseeable future. Don’t delay reviewing your annual Social Security/Medicare Statements!!!
For those non-client subscribers; having an unbiased review of your investments and planning is always a good idea. To schedule a complimentary review, please email us, or give Ellen a call at 856-354-3200, ext. 205. We can schedule a review or consultation via phone, Zoom, or in-person.