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What's Next for the Markets? Thumbnail

What's Next for the Markets?

The 3rd quarter saw the Markets make up for losses from March and grew 9.2%.  While this was a slower rate than the 2nd quarter growth rate of 22%, the Markets are back in positive territory for 2020.  The Markets did show signs of cooling towards the end of September as it took a pause amid the uncertainty of the Covid-19 crisis, the economy and stimulus package legislation.  

The impressive result can be a bit deceptive as a majority of the growth & cooling off can be attributed to large technology companies such as Amazon, Google, Apple, & Tesla. A majority of American small business are still struggling to get by during this crisis.

Can the Markets continue to improve? There are a number of potential headwinds in the 4th quarter of 2020 that can pose a challenge to continued growth:  economic impact of the Covid-19 crisis, the upcoming Presidential election, passage (or not) of a second stimulus package, and the Supreme Court vacancy.

What can we do?  Control what we can control:  Maintain a balanced and long-term approach to investing, have emergency cash reserves in place, & watch our spending.  Most of all, remain calm, breathe, and stay healthy.