Market Update: Sep 24 2020
- Market Expectations
- Presidential Election
Here is a recap of our live Q&A session held on 9/24/20 presented by Joe Randazzo JD, CFP® from FNA Wealth Management and Dave Stone CPA, CFP® from Tartan Wealth Management.
Details for our next session, October 8th, can be found here.
What are your expectations for the market over the coming weeks?
We expect politics to be front and center between now and the end of the year. It appears there will likely be a fight about a Trump appointed Supreme Court justice and there will be little to no chance of a stimulus package before the election. This political drama will likely have a negative impact on the stock market in the coming weeks. Coupled with the possibility of a disputed election that may drag on for some period after November we would expect this uncertainty to enhance volatility.
The market will continue to be monitoring progress of COVID vaccine as Johnson & Johnson have entered Phase 3 of their trial. We may have results of other trials that have been underway over the next few weeks. If the results are bad the market may react adversely and create selling pressure.
I do want to point out that market reactions to political rhetoric and results of the election have typically served as short term noise in the markets. For those with a longer-term strategy there is likely no reason to make drastic changes to your portfolio. As always this may be a good time to review asset allocations.
What can help drive the markets higher in the near future?
We would look to the following economic and fundamental catalysts to drive the market higher as we enter Q4 2020 on October 1st.
- A better than expected Q3 GDP number.
- Jobs data continues to show recovery.
- Corporate earnings for Q3 are better than expected and guidance is showing positive trends.
The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Capital Analysts or Lincoln Investment. The material presented is provided for informational purposes only. Nothing contained herein should be construed as a recommendation to buy or sell any securities. Past performance is no guarantee of future results. No person or system can predict the market. All investments are subject to risk, including the risk of principal loss. Asset allocation does not guarantee a profit or protect against loss.