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Market & Portfolio Review: 12-04-20

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Stop Fearing Success

In the throes of the Great Depression, President Franklin Roosevelt proclaimed that the only thing to fear was fear itself. The importance of President Roosevelt’s words cannot be understated, as fear is a cancer that inhibits our ability to realize our dreams and is the PRIME CULPRIT that limits and depresses our wealth. As we approached November, fear of the election and COVID-19 overwhelmed the psyche of professional and retail investors alike, paralyzing them, and in many cases forcing them to sell shares in great U.S. companies. As a result, those investors missed out on one of the best months in stock market history. It turns out that the only thing investors really had to fear was FEAR ITSELF!

The bottom line is that investors must always be guided by DATA and approach investing with an independent mind. March of 2020 represented a market clearing event that restarted the business cycle back to the first inning. As we approach 2021, inflation and interest rates are low, and the economy is recovering in the face of endless pessimism. As a result, we remain optimistic about companies leading the digital economic recovery.

In this week’s market update, we will study stock market returns in the month of December during years when the first 11 months experienced positive return outcomes. Second, we want to review the month of November, what happened, why it happened, and what it suggests about the durability of the current stock market rally and the companies leading the charge. Lastly, we will explore the direction of stock market breadth, investor sentiment, and the health of the credit markets, which underpin the global financial system.

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.

Robert Reaburn

Robert Reaburn

Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management. He works with financial advisors building diverse financial portfolios that best empower their clients with a lifetime of financial security.

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