Message from Jon
We are seeing once again where the markets are reaching their frothy top even as the economic news is getting more and more gloomy. In our opinion, this could be a number of things, ranging from the anticipation of more Federal Reserve Stimulus, to the Government extending unemployment benefits, or even the valuations are not as overvalued as everyone seems to think, especially in the Mega Tech Sector.1,2,3
We are holding our approach for clients and staying in the now while avoiding any kind of speculation on the why's and what for's simply because the unknowns are growing daily it seems. There is definitely a disconnect between what's occurring on Wall Street and what's happening on Main Street, in our opinion. Does that mean we move to higher ground? Not necessarily? Does that mean we push more into stocks, especially the mega tech stocks that have been benefiting since March? Not in our opinion, you don't.
What all this means is that there is more that we do not know than we do know, and at present, the importance of a vaccine and stemming of COVID-19 is paramount. It appears that if you cashed out in March, you lost out since then. It appears that if you just bought the markets and held till now, you were right in the short-term. Both mind-sets were placed based on the desired level of risk the client had chosen to take at the time of their decision, but it is way too early to tell how that will play out over the long-term.
Till we speak again, remember what is most important and stick to your plan,
Stocks See a Mixed Week
WEEKLY UPDATE - JULY 20, 2020