Friends, In referring back to my commentary last quarter, this “unprecedented time” has continued, but thankfully we’ve had quite a recovery in our portfolios in the 2Q (you should look). Our investment philosophy of a mix between active “stock picking” managers and low cost index funds has continued to help our client’s meet their goals and held up nicely through the “storm.”
The major indexes continue to be down for the year, something we
haven’t seen in a while, but we feel this represents an opportunity for new investments and should reward investors once this “covid” era is behind us. Besides Covid, many of you have asked about the election.
As I’ve mentioned over the years, the implications of one candidate or party over another have very little effect over a market cycle. Here are some notes I found interesting for those still concerned: Bloomberg ran a story on the implications of Biden beating President Trump. It noted that some strategists have recently suggested that market sentiment about a Biden win has been too negative.
JPMorgan highlighted the potential benefits of infrastructure stimulus, higher wages, dampened trade tensions and less onerous changes to corporate taxes than have been previewed. In terms of the latter, Goldman Sachs, which has estimated that Biden's tax plan could lower 2021 S&P 500 EPS by $20 a share to $150, recently pointed out that there is a good chance that any shift would be fiscally neutral and could also be phased. It also noted that a Biden administration would likely adopt a more favorable view of international institutions and alliances.”
See the attached for some quarterly numbers: Market Review
Take care of yourself, your family, and we will continue to do the same for your financial game plan!
