A summary of market outlooks and current portfolio positioning for 4th Quarter 2020 for some of our Managers. Please see the following PDFs:
Just wanted to get a quick note out to kind of play "cheerleader" as we continue the last few weeks of the year and finish out the election coverage.
We have been watching and listening diligently as we have gotten closer to Election Day. There have been numerous webinars and podcasts put out by our various investment partners trying to frame the possible outcomes and what that might mean to the markets. As you can imagine, they have run the gamut as to what to expect, but most have generally agreed that it is particularly to handicap any outcome this year.
The key things we have gleaned from our listening and reading:
- Historically, volatility typically spikes leading up to the election (which we have seen again this year) and then the markets have tended to calm down quite a bit once the outcome is know (so this year we might expect continued volatility up until and following the election if they are still counting votes, but hopefully we experience some measure of calm once the outcome is indeed known...remembering that the markets always prefer certainty, even when it may not be the preferred outcome of the prognosticators)
- It is challenging to make any market predictions tied to any particular outcome because there are so many moving parts this year. First, the focus will be on who wins what (the Presidency, the Senate). Then the focus will change to how quickly and calmly the transition of power is likely to happen. Then the focus will be on what near-term policies are likely to be implemented, specifically stimulus and infrastructure spending and containment of the pandemic. And then the focus will move further out to what might happen in the areas of trade, taxation, and regulation (and even fiscal policy that will impact inflation projections).
We have tended to feel that it will be wise to be appropriately cautious in the coming weeks (especially with new money) but not to make any big bets one way or another. We are reminded that markets have often had decent, and even sometimes really good, performance in the year following an election, so we will want to be judicious in any major changes we make to long-term investment plans in particular.
We know these continue to be anxious times for many, and our hope is that we can be a source of confidence and reassurance for you as our country continues to address the challenges we are facing.
We are here for you... please let us know if there is anything we can be doing to be a resource as we start thinking about 2021. We will continue to pray for our country and our leaders and endeavor to stay focused on the things that we can control.
All my best,
Darrell
We thought it would be beneficial to provide you all with tips/resources to prevent scammers from getting your personal information as unfortunately, during times like these, activities such as these typically increase.
Phone Tips
· Never provide personal information such as social security, credit card or bank account numbers to anyone even if they say they are a government worker, especially if they called you.
· Government agencies like the IRS, SSA and the FBI will not call you on the phone if they need to communicate but rather send you a letter or email.
Internet Tips
· When making online purchases, use only one credit card for all purchases
· Ensure that websites have secure payment process prior to submitting payment
· Never open or respond to an email that you are not familiar with or recognize
General Tips
· Get and review a free copy of your credit report at least every 12 months from each credit report company @ www.annualcreditreport.com
· Monitor your credit statements monthly for any fraudulent activity.
· Report unauthorized transactions to your bank, financial firm or credit card company ASAP.
Learn more on the Bloomington Police Department website @ www.cityblm.org/police or www.facebook.com/cityblmPD. They have several informative brochures that you can download.
When will 2020 end? It seems like that is a sentiment we hear from many people nowadays. 2020 has presented many challenges, and yet we are so proud of the way that those around us have chosen to deal with them: with a positive attitude and a renewed focus on the important things in life. Fortunately, the markets have bounced back strongly from the lows that we saw in March/April.
We understand that, given all of the things coming at you right now, you might be more apprehensive than usual, and we want to make sure we are communicating with and meeting with you as often as you would like. If there is any gap there, please let us know so we can connect right away. We also know that many of you have questions regarding the upcoming elections, so we thought it would be good to provide summaries put together by some of our investment partners (Horizon, Fidelity & American Funds) that we think do a good job of examining the potential outcomes in a non-political way. We hope it is helpful to you as you navigate the coming months.
· https://www.fidelity.com/learning-center/trading-investing/election-2020-insights
A summary of market outlooks and current porfolio positioning for 2nd Quarter 2020 for some of our Managers. Please see the following PDFs: