Gridlock Goldilocks
While votes are still being counted, for investors, this election is over. Like we said over the past few months, it doesn’t matter who gets elected; it only matters to get past the election date and ideally for no individual political party to accumulate too much power. A do-nothing Government is a good Government when it comes to stock prices, as it allows us to focus on the real factors that help identify companies that have the potential to create shareholder value.
The bottom line is that despite all the concerns surrounding the election, COVID-19, and the prospects for a second stimulus package, the truth is that the economic recovery continues unabated with strong job creation and rising wages, complimented by falling interest rates and subdued inflation. This is historically very positive for stock prices on a going-forward basis.
In this week’s market update, we will review market performance under unified and split Government and the power of staying invested regardless of which political party wins power. We will also review Friday’s non-farm payrolls report, what it means for the state of the economic recovery, and, most importantly, your money. Lastly, we will wrap everything up with a review of corporate earnings in Q3 and the state of the corporate credit markets, and how those markets have held up through the uncertainty of the past month.
The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.
