Some people in recent weeks may have been feeling that “the market seems to be doing so well but I’m not participating in any of these high-flying stocks.”
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 stocks are big winners in the 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 (primarily tech stocks) 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. Don’t let the fear of missing out, or FOMO dictate your investment decisions. Managing Director and Financial Advisor Ed Doughty dives into this topic in a recent video.
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.
The news keeps getting better for Social Security recipients. It’s now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983.1,2
Inheriting wealth can be a burden and a blessing. Even if you have an inclination that a family member may remember you in their last will and testament, there are many facets to the process of inheritance that you may not have considered. Here are some things you may want to keep in mind if … Continue reading “Coping with an Inheritance”
It’s long been an aspirational target for entrepreneurs. It literally goes beyond “blue sky,” in terms of location, to a place no business has gone before: Outer Space! The name of the game is commercial space travel.
With all the attention given to inflation, stock prices, and job reports, it’s been easy to overlook the remarkable move in the bond market during the past few months as bond yields have fallen. The yield on the 10-year treasury closed at 1.37% on Friday, July 9, down from its 2021 high of 1.74% in … Continue reading “The Quiet Fall in Bond Yields”
On July 6, oil prices reached a six-year high of $76.98 a barrel. This benchmark came as the Organization of the Petroleum Exporting Countries (OPEC) and allies failed to reach an agreement regarding an increase in production.1 This rise in cost follows a year in which OPEC and allies cut production amidst the COVID-19 pandemic. … Continue reading “Oil Prices Hit Six-Year High”
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >