Message from Jon
"Where We Are and What We Know Now"
Wednesday Sept 23rd at 12pm
We saw a decline in the last 2 weeks in the NASDAQ and S&P 500. The NASDAQ fell in the range of what is commonly referred to as a correction. Whether this week's improvement in the market conditions is a result of the correction or a result of continued euphoria, it is hard to tell at this point.
In our opinion, we are beginning to see information that seems to point to a weakening economic condition on the horizon as well, but as we have experienced in the past, the markets do not always pay attention to the narrative. Options activity—a data point we measure to help us see the overall condition of the markets—continues to remain at historic highs. "Retail doesn't have the ability to move the market by themselves, but by buying calls they force dealers to hedge themselves, and triggered this parabolic move in tech stocks," said Ben Onatibia, a strategist at Vanda Research.
What we are measuring is the undercurrent that could give us some advance warning to shifting conditions before those conditions create larger issues and risks to principal.
We will not begin to model portfolios for election outcomes until October, giving information time to materialize in a manner that is actionable. Depending on the information, we may choose to delay rebalancing actions until closer to or after the election takes place.
In our upcoming webinar, we will be covering the election, current conditions and more, so if you have not yet reserved a spot, click the link above and do so.
Till we speak again, enjoy some fall and football!
Stocks Continue Downward Slide
WEEKLY UPDATE - SEPTEMBER 14, 2020
The Week on Wall StreetStocks traveled a volatile path last week as investors appeared concerned about the upcoming elections, an uncertain economy, and more delays with additional fiscal stimulus. The Dow Jones Industrial Average slid 1.66%, while the Standard & Poor's 500 slumped 2.51%. The Nasdaq Composite index plummeted 4.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.44%.