Broker Check

Market Recap (October 31 2020)

August 31, 2020
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The market posted solid gains last week with all major indexes ending the week higher. With one trading day remaining for the month, August will likely record gains across the board. Despite many potential concerns, the markets continue to march on.
 
While today’s markets seem to be nearly bulletproof, keep in mind that uncertainty weighs heavily on daily returns. With the continued increase of new COVID cases, the lack of a new economic stimulus plan, high unemployment numbers, and no timetable to fully open up the economy, there is plenty of uncertainty out there.   
 
Additionally, with both the Democratic and Republican National Conventions concluded, the presidential campaign will undoubtedly dominate the news cycle. 
 
Any one of these concerns can derail the market’s rise and we do anticipate an increase in volatility this fall. However, unless your risk tolerance or time horizon has changed, we urge you to stick to your investment discipline. See the following article on diversification for details on how we design portfolios for volatile times.