Investing Update: Year-End Rally Underway?
What I'm buying, selling & watching
What a week this was! The election is finally over. That means no more political ads or commercials. No more calls, texts or door knocks regarding the election. I think everyone is excited about that!
Then to top it off the Dow, S&P 500 and Nasdaq all finish the week at new all-time highs. This was the best week of the year for the Dow and S&P 500. It marks the 50th all-time high this year for the S&P 500.
Friday saw the Dow briefly hit the milestone of 44,000 and the S&P 500 hit 6,000. All three of the major indices were up over 4% on the week. The Russell was up over 6% and Bitcoin jumped over 11%.
Market Recap
You can see how the market just took off after the election on Tuesday. The Fed cutting 25 bps on Thursday kept the ball rolling.
Small caps actually had their best week since April 2020.
Here is a look at the heat map for what certain stocks did for the week.
And here is an overall update on various ETF performers for this week, YTD and for the bull market so far.
Something investors need to keep in mind is just how early in the bull market cycle this bull market is. It’s a baby bull. Did you know that the average length of a bull market going back to 1950 is over 5 years?
This point of the cycle is bullish. In the short term, remember that November, December and January are historically the 3 best months of the year.
It sure looks like the year-end rally may be underway. More on this a little later.
The Final Election Charts
With all of us celebrating the end of the election and all that comes with it. This will be my last look at election related charts. After this there will be no more. Yes this election wore me out and I’m tired of politics for a while.
Did you now that since 1929, there have only been 4 presidential terms that the S&P 500 didn’t finish with a positive return?
That’s a good reminder that over the long term, presidents or political parties don’t control the stock market.
And as you can tell regardless what political party is in power, the economy and stock market have thrived under both.
