October 1 Weekly Market Update

Last week marked four straight weeks of losses for the stock market as investors are beginning to show the early stages of election-based jitters. On Tuesday night, President Trump and former Vice President Joe Biden met for the first of three presidential debates. Tuesday’s debate was contentious to say the least. The two politicians rattled sabers on everything from taxes and health care to the economy. As election season nears its end, investors are sorting out the potential market and economic impacts of each candidates’ polices.

Speaking of politics, the market has demonstrated unease around Congress’ ability to come to terms on a new fiscal stimulus bill. This week the Democrat led House of Representatives proposed a new $2.2 trillion package that includes direct payments to individuals, support for state and local governments, as well as funds for the struggling travel and leisure industry. Whether or not this relief bill makes it through the Senate remains to be seen, but the market does seem to be losing patience with the ongoing inaction.

In a sign of the times, media and entertainment giant Walt Disney announced it would be laying off approximately 28,000 employees, including many who work at the company’s theme parks. As attendance has plummeted due to the COVID-19 pandemic, the company is having to pare back on a large number of part-time workers.

Historically, September has been a poorly performing month for the stock market and that held true in 2020. However, this year has had some unique circumstances, to put it mildly. With a recent increase in new COVID-19 cases and the pending election, expect volatility to rein supreme in the near-term. As such, I believe it judicious to have some exposure to high quality, investment grade bonds where appropriate. These exposures can help dampen portfolio volatility in time periods when stocks are struggling. As always, please reach out should you have any questions.

Stay safe and be well.

Market comments based on the S&P 500, Dow Jones Industrial Average and NASDAQ Composite indexes which are unmanaged and cannot be directly invested into.

The information provided, including references to individual companies is for general informational and educational purposes only and is not a recommendation of any kind or investment advice.

Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time and cannot be guaranteed.

Past performance is no guarantee of future results. Investing involves risk and the potential to lose principal.