3rd quarter of 2020

Nobody said the recovery would be easy.

We hope that everyone enjoyed their summer and are wishing those with kids and/or grandkids a safe and happy return to school. It has been several months since most of us were in our regular routines so hopefully along with the fall weather comes some semblance of normal to our daily lives.

A good quarter for stocks: The third quarter provided investors absolute returns across global asset classes. Economic and corporate profit growth was strong. Cyclical sectors respond to economic recovery as global economies re-opened. As I wrote in last quarters letter while the Federal Reserve remains committed to keeping short-term rates low as far as the eye can see. The Fed doesn’t think we’ll hit its 2.0% inflation target until at least 2023. “We’re not even thinking about thinking about thinking about raising rates”

–Jerome Powell, July 29, 2020

With all eyes on the election there are short term risks with the largest risk if we have a contested election. In a time of intense political and social disruption, the possibility of an unclear or contested election result is not out of the question. The S&P 500 has correctly picked the winning political party in a presidential election 20 of 23 times since 1928 (87% accuracy). Source: Strategas Research Partners as of January 2020. Past performance is no guarantee of future results.

If periods of volatility increase, we recommend using pullbacks as buying opportunities for quality equites.

I believe every solid relationship should center on open communication. You have several options to access the information you need to know about your portfolio, my firm, Raymond James and the financial markets. In addition to our in-person meetings and one-on-one calls, we'll also communicate with you through other channels, such as our website, newsletters and social media. You have already been receiving regular updates and emails from me. These communications are designed to provide you with insight into the ever-evolving financial markets and help build the confidence that comes from working with an experienced advisory team. If you haven't already done so, I encourage you to go to my website to learn more about my firm and access some of the recent research and articles available to you. I also utilize social media channels such as Linkedln. If you already have an account on Linkedln consider following me. These channels provide an excellent way for me to keep you up to date with relevant, timely news. Please let me know how you prefer to receive important communications and how frequently. We'll do our best to deliver. Guiding you toward financial independence is a collaborative process, and I hope you feel comfortable reaching out to me whenever you have questions, concerns or even new ideas to help me better serve you.

Regards,

Elliot Weissmark, CFP®, CPFA
Senior Vice President, Investments

Any opinion are those of Elliot Weissmark, CFP @, CPFA and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. 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. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. Prior to making an investment decision, please consult with your financial advisor about your individual situation. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise.