Last June began the summer lull of what was going to be the continuing trauma of the COVID-19 pandemic and economic lockdown. The government and the Federal Reserve had announced an array of dramatic actions to support the economy. Then, during the Fall and Winter, the COVID-19 lock down returned hard again.
Although the trauma was far from over, this stimulus continued to rally the stock markets. First growth stocks rebounded, then, towards November, value stocks joined in.
Now the cloud is lifting, and hopefully not to return. Stock markets have continued to rally with economic optimism replacing government stimulus. Going forward, dealing with the damage may cause market volatility.
But our message last June, as it is now, “staying invested has a successful track record.” And that we should expect continuing volatility….making timing the market by getting out and back in extremely difficult.
The current edition reviews the follow:
- The hard fall and fast rebound in employment.
- The stock market’s quick trip down and a rally into this year.
- A reminder that staying invested has a successful track record.
As always, know what you own, do not overinvest, and stick with quality.
-Cliff Jarvis