Todd’s Take on the Market
Stocks closed higher going into the holidays, thanks to late buying and a Brexit deal reached in Brussels. However, negotiations in Washington for a COVID relief bill are still undecided.
The S&P 500 is currently on pace for a gain of 10.89% in the fourth quarter. As good as that performance is, it’s only a bit more than half as strong as the gain of 19.31% in Q2 earlier this year. Although far from the strongest quarter this year, th is quarter is on pace to be the strongest Q4 for the S&P 500 since 2011. Depending on how things play out in the next few days, it could end up being the best Q4 since 1999.
With the year winding down to the last few trading days of 2020, the major averages have done much better than I or a few people would have expected.
The Dow fell into the last place with only a gain of 8.27%, while the S&P 500 tacked on another 16.7%. The year’s winner is the NASDAQ gaining a whopping 43.9%.
Not much economic data this week, the big story has been the stimulus package, including unemployment aid and $600 checks to be sent.
So, as the year winds down, I pray that all of you are in good health—a strong mental attitude—and waving this year GOODBYE!
Speak to you at the turn of the year. God Bless!
Todd Day, MBA
Portfolio Manager
Horizon Financial Services, LLC
