Last week’s market was quite the teeter-totter. While Tuesday and Thursday posted significant losses, most markets showed gains on Wednesday and Friday. However, losses did exceed gains overall with all major indices ending the week in the red. Technology stocks once again led the way down. The Nasdaq was particularly hard hit as Apple, Amazon, Facebook, Netflix, Alphabet (the parent company of Google) and Microsoft all ended the week lower.
Pessimism centered around elevated stock valuations and the continued uncertainty over COVID-19, international relations and the presidential election. However there were also reasons to remain optimistic, including strong Fed liquidity and our improving economy. August consumer prices posted a solid increase, indicating people are spending money (individual consumers are the single strongest driver of our economy.)
Returning to uncertainty over the upcoming presidential election, we have received several calls and emails with questions regarding the impact of the election on the market. See the following article for a breakdown of how elections have historically affected investments.