Without a doubt, 2020 will be one for the record books. After starting the year with a roar and the economy cooking on all 8 cylinders, a strange virus showed up on our shores and brought the country to a grinding halt. Slowly but surely with the help of American ingenuity and a ton of government money, we are ending the year with strong optimism about 2021 and beyond. Equities have rallied, mostly in the large cap growth companies like Amazon, Facebook, Google, and other tech companies. Now, it appears that there is a rotation into the value side of investing such as companies that pay dividends. I heard one commentator say that he liked stocks that, if you dropped them on your foot, it would hurt. These types of companies are built for the long haul with strong balance sheets and excellent management as well as a strong product offering. They’re also liked by the portfolio managers and yours truly.
While there are still some election issues to be determined, we’re seeing a rise of the old guard on some of Joe Biden’s potential appointments to leading positions in the administration. We also await the final 2 senatorial positions in Georgia to be determined in the 5th in January 2021. The balance of the senate remains in question as to which party will be in the majority. How all of this will affect the economy remains to be seen but, if the past is any forecast of the future, the economic recovery from 2008-9 was the slowest and smallest on record.
The attached article about what moved the markets last week is a good summary of what happened. The equity markets seem to indicate that, with the announcement of vaccine successes, the American economy may be heading for a strong rebound and the hope of returning to some sense of normalcy. We can only hope. And, just in case the Covid-19 hangs around, I also included an article on tips to be prepared, should you suddenly become isolated and unable to communicate normally.
Jean & I hope all of you had a very pleasant Thanksgiving weekend remembering what’s important about life. And, as always, should you have any questions or wish to speak with me, please call or email so we can put something on the calendar.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.