Insights + Resources

Have Stocks Left You Behind?

Sep 11, 2020

Abandoned Phones Left Behind
Here’s what the recent rally could mean for you.

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.

Tags: , , ,

More Insights

Nov 23, 2020

As the United States sees a rise in cases of COVID-19 across the nation, news of two promising vaccines out of hundreds being tested has offered a ray of hope for a fatigued world.1

Nov 20, 2020

With the Federal Reserve keeping interest rates at or near zero, you may wonder about your mortgage. Is it a good time to refinance or even pay off the debt entirely? After all, your mortgage is one of the biggest expenses you may have in life, so why not rid yourself of that debt as … Continue reading “Interest Rates and Your Mortgage”

Nov 18, 2020

As an investor, it can be tempting to get caught up in daily news headlines. From election news to vaccine updates, these headlines can lead to additional volatility in the markets. Consider how news about the election and COVID-19 vaccines have moved the markets over the past several weeks. But having a financial strategy can … Continue reading “Speed Bumps and Vaccine Headlines”

Nov 16, 2020

Here’s a windfall scenario for you: You pick up what appears to be a lottery ticket. You check the numbers for a laugh and discover a winning combination, offering you millions of dollars in prize money. What are the chances of that?

Nov 13, 2020

With all the election chatter and stock market volatility, it may have been easy to miss the ongoing uptrend in long-term interest rates.

Insights + Resources >