Second Half of 2020
We are looking forward to 2021 and putting 2020 in the rearview mirror. On a personal note, we are deeply saddened how the Covid-19 virus has impacted our clients and their families in so many ways, especially those who lost loved ones. It’s been an unimaginable, painful year.
My clients have heard me say many times over the years that the economy and the stock market are two different things, only loosely connected. The economy is “now” with data from the past, while the stock market is a discounting market place, looking out into the future. 2020 has been an example of this as the economy fell into a deep recession and remains weak but the stock market ended the year at record highs.
The last couple of months of the year saw a strong rally in value stocks, which outperformed growth. This is an important change we predicted in my last Ken’s Korner and something we think can continue well into 2021 and beyond. We have been changing allocations accordingly where appropriate. In addition, many international markets performed well and we also expect this to continue well into the future.
We appreciate our client’s continued trust and confidence through these volatile and turbulent times. Despite so many unsettling events and concerns currently, we continue to look toward the future optimistically. The markets are forecasting better days ahead and we agree. We look forward to meeting with you and helping you reach your personal goals. Stay safe.
Best regards,
Ken
This market commentary is provided for information purposes only and is not a complete description of the securities, markets, or developments referred to in this material. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary. Past performance does not guarantee future results. Dividends are not guaranteed and may fluctuate.
