There are a number of events to keep an eye on as we move into the second half of the year that could potentially move the market one way or the other.
- A vaccine for COVID-19. There are a number of reports suggesting that a vaccine could be ready as soon as the end of September. Moderna, a large biotech company, announced they are in the final stages of having a vaccine ready soon. This is obviously very good news and has the potential to help the economy recover much quicker. Learn More
- There is a scheduled conference call on August 15th between the Chinese and the Trump administration on the phase one China trade deal. If all goes well this could lift the market. In the past, we have seen these trade relations move the market by themselves.
- The election will play a huge part in how the market finishes the year. I can’t remember an election in my life time where the policies and candidates are so different. This will definitely have an impact by years end. Remember, we have the ability to short the market. This means we can make money in either an up or down market. We will be ready to move regardless of the outcome.
- There are a number of smaller issues that will influence the market as well such as stimulus packages, unemployment numbers, and getting kids back in school so parents can work.
I am very excited to report that it only has taken approximately three months for our accounts to fully recover from the financial disaster caused by the pandemic earlier this year. In my opinion, there is still a very strong possibility the “V” shaped recovery will continue. It is very likely that if many of the scenarios listed above are positive, we could easily see double digit returns by years end. Stay tuned, it is going to be very interesting!!