Some people in recent weeks may have been feeling that “the stock market seems to be doing so well but I’m not participating.”
If you want to revisit your goals, please give our office a call. Or, if you're second-guessing some of your goals, let us know what’s on your mind.
We’re here to help you pursue financial success.
A look behind the headlines helps tell the story.
A CNBC study found that between the stock market high on February 19, 2020—and the new market high on August 18, 2020—only 38 percent of stocks in the Standard & Poor’s 500 index posted gains. By contrast, 62 percent showed losses.1
The best performing sectors during the six-month period were consumer staples, health care, and information technology. If your portfolio was overweight in these groups, you may have outperformed.
Meanwhile, financials, energy, and utilities lagged behind.1
Each year, some companies are big winners in the stock market and some can’t keep pace with the popular index.
This year is no different.
However, we often don’t see such a wide divergence by the market averages. For example, the Nasdaq composite gained 26 percent through August 21, 2020. That compares with an increase of roughly 5 percent for the S&P 500 and a slight loss for the Dow Jones Industrials.2
Investors need to understand that it’s not about how the stock market performs. It’s about whether you are pursuing your financial goals based on your time horizon and risk tolerance. How the stock market moves from week-to-week, or month-to-month, should be of some interest but perhaps not an overriding concern.
1. CNBC.com, August 22, 2020
Investing involves risk, and the return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest.
FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
Has the Stock Market Rally Left You Behind?
September 04, 2020