If you believe that “the trend is your friend,” then perhaps the U.S. stock market is in for a good fourth quarter. Despite some market volatility last week, stocks are in positive territory for the year. Certified Financial Planner Paul Fain joins us again with a review of year-to-date investment results and a look ahead for your Sunday Money.
HOW ARE VARIOUS STOCK MARKETS PERFORMING SO FAR?
Index YTD Return (Oct. 10)
S&P 500 5.8% (large U.S. companies)
Russell 2000 3.6% (small U.S. companies)
International -5.5% (developed markets such as France, Germany, Japan, UK)
Emerging -15% (emerging markets such as Turkey, China, India, Brazil)
IS THE RISING TIDE LIFTING ALL BOATS OR ARE SOME SECTORS LAGGING?
Sector YTD Return (Oct. 10)
Healthcare 13% (drug, biomedical, equipment)
Technology 10% (software, hardware)
Basic Materials -9% (chemicals, metals, mining)
Consumer Defensive -4% (food, beverage, household)
WHAT ABOUT RETURNS ON CONSERVATIVE INVESTMENTS?
Headwind of rising interest rates pushing down bond prices:
U.S. Bonds -2.5% (total bond market)
Long-term -6% (maturities 10 years+)
Inter-term -2% (maturities 5-10 years)
Short-term 0% (maturities < 5 years)
T-Bill 1.4% (3-month)
HOW MUCH WILL THE MIDTERM ELECTIONS INFLUENCE OUR INVESTMENTS?
- Midterm elections traditionally have short-lived to marginal impact on the markets.
- How will government policy impact corporate earnings, inflation, economic growth?
- A strong likelihood for heightened stock market volatility during this election season.
- Afterward, economic and market trending conditions will prevail
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