2nd Quarter 2020 Market Update

2nd Quarter 2020 Market Update

July 08, 2020

We just experienced the best quarter in the market since 1987!  Wow, how things can change!  I have been saying it would be the technology sector that would lead us out of the worst market downturn since the great depression.

That is exactly what has happened.  I also have encouraged everyone to be patient.  If history was any indication, the market would turn around just as it always has going back over the last 80 years. The NASDAQ, which consists primarily of technology companies, has set an all-time high this quarter. The other indexes are not far behind.  Our accounts have recovered almost all losses sustained after the first quarter, depending upon risk tolerance. Some key factors made this possible. One was due to active money management. We did not lose as much, which means we did not have to earn as much to get back to even. Another factor was we were leveraged to the upside for much of the quarter.  A large percentage of our portfolios earned 1.5 to 2 times what the market was returning.  Losses can be recovered quickly when leveraged in an upmarket.

Jerry Wagner, one of our money managers, shares this bit of information. I thought you might find it interesting:

“One positive seasonality indicator to watch for is where the close of the Dow Industrial Average is at month’s end. A close above 25,383.11 would mean that the Dow has triggered a “second quarter trifecta” buy signal, which occurs whenever each of the three months of the quarter closes higher. Such a signal has occurred 17 times since 1901, and 14 of the signals have seen the Dow move higher nine months later to the tune of 15% average gains. The average downturn was just 1.1%, and the last losing trade was in 1919!”  On June 30th the Dow closed at 24,812.88.

The concern many of us have is saving enough money to be financially independent. We also hope to get a better return than what is available at other financial institutions. In order to do this, we need to understand how money works. The problem is, no one has taught most of us how it does work.  This can leave us discouraged, confused and apprehensive about the future.  I believe that everyone deserves a custom financial plan designed specifically for them.  I also understand that the lack of a clear financial road map can make one feel anxious. At Global View Capital, we have over 100 years of financial experience, and I personally have over 150 clients living their dreams in retirement right now. We accomplish this with a three-step process. We gather some information, design a customized financial plan, and review it often to be sure we account for any future changes.

If you know of anyone who wants to stop worrying about their future, and would like to live a stress-free life knowing how their money is working for them, I would be happy to help plan their future. Have them visit our website at www.gvcpleasantgrove.com. You may want to check it out for yourself.  There are some very cool things to see there.

Obviously, there are no future guarantees. We are still in some very crazy and unpredictable times. In my opinion, things look very promising so far.  I think you are some of the very best financially educated people on the planet. It is an honor serving you. THANK YOU for allowing me to be a part of your life!!