September 24 Weekly Market Update

The stock market has gone through a bit of an identity crisis over the past week. Investors have been grappling with a litany of concerns, including seemingly expensive valuations, a lack of new fiscal stimulus and rising trade tensions with China. Monday provides a good example of the market’s seesaw behavior: During the day, the Dow Jones Industrial Average was down more than 900 points… then recovered by market close to finish “only” a little more than 500 points down.

Furthering investor angst is the continued rise in new COVID-19 cases in Europe, most notably in the U.K. This renewed surge in cases prompted U.K. Prime Minister Boris Johnson to implement a series of new restrictions that may last up to six months. While reversing the country’s reopening plan is necessary for public health, it has led to renewed fears the U.K’s economy may go through yet another lockdown driven hiccup.

On a more positive note, health care giant Johnson & Johnson announced it is moving onto the final trials of a COVID-19 vaccine. Results for the 60,000-person trial are expected by late this year or early 2021. J&J’s vaccine is unique relative to the potential vaccines of its competitors; it is a single shot vaccine, which can ease administration and accelerate immunization.

Finally, I would be remiss if I did not mention the passing of Supreme Court Justice Ruth Bader Ginsburg. RBG, as she was affectionately known, was an icon and inspiration for women of all ages. She will be missed by many. Sadly, her death also was quickly politicized as the Trump administration seeks to fill her Supreme Court seat before the election, a move most Democrats vehemently oppose. This is an example of the political fighting that could lead to further stock market volatility as election day approaches. As such, I continue to believe diversification to be a prudent course of action.

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.