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A September Pothole -The S&P 500 Index surged an impressive 60% from the March 23, 2020 bottom.

A September Pothole

The S&P 500 Index surged an impressive 60% from the March 23 bottom to the most recent high in early September (St. Louis Fed S&P 500 data). But stocks hit a roadblock in September.

Key Index Returns

Given the incredible run, a pullback was inevitable. But as I’ve counseled before, the timing, magnitude and duration of a pullback is impossible to predict. Your success is based, at least in part, on time in the market, not timing the market.

A real diversified portfolio along with your Investment Policy Statement (IPS) aligned with your Values-Based Goals is a mandatory component to your Holistic Financial Plan. Holistic Plans we suggest are tailored to one’s specific needs and Values - Based goals. There is No One-Size-Fits All when it comes to your financial health.

The Pothole Pullback

There were several factors that played a role in last month’s pullback.

Any uncertainty creates a good excuse to take profits after a big run-up in price.

Daily Covid cases in the U.S. ticked higher last month, per Johns Hopkins data.

While it won’t be cheap, Congress has yet to find common ground on a new fiscal stimulus bill. The economic bounce in Q3 has been much stronger than most initially thought possible. But investors and many analysts believe more support is needed.

Finally, the election is front and center. We may not have a winner on election night. Worse, a disputed election would add to investor angst.

2020 election

My role is to be your financial advisor and money mentor. I have worked hard to earn your trust. I am not a political analyst. I am here to guide you as you journey toward your Values-Based financial goals, make wise investment and financial planning decisions with clarity, confidence and results.

Therefore, I will carefully and cautiously review the current political contest through a very narrow prism–through the eyes of a dispassionate investor focused on the economic fundamentals and how that might impact equities.

Longer term, stocks march to the beat of the economy, Fed policy and corporate profits.

A growing economy fueled by innovation and entrepreneurship has been the biggest driver of stocks over the many decades.

Open Door Policy

I trust you’ve found this review to be helpful and educational. We have addressed various issues with you, but I have an open-door policy. If you have questions or concerns, let’s have a conversation. That’s what I’m here for.

As always, I would be honored and humbled to be given the opportunity to serve as your financial advisor and money mentor.

Please Note: This article includes the latest information, but the situation surrounding Covid-19 remains fluid. No specific recommendations are made and you should consult with a Fiduciary Advisor - Retirement Income Certified Professional.

If you have any questions, we would be happy share our recommendations. We’re simply a phone call, email or Zoom away!

Stay Your Path, Stay Healthy,

Michele von Hoven, RICP, RFC, IAR & EBW Certified Money Mentor


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