In the three months since Joe Biden was elected President of the United States, small company stocks have risen more than 30%. Four years ago, Donald Trump was elected President of the United States and small company stocks went up almost 20% in the twenty-six days surrounding the election, from November 3rd to December 9th. Do small company stock investors just like new Presidents?
Many of my favorite content pieces from 2020 reflect on the themes of uncertainty, risk, change, and remaining optimistic in the face of unsettling circumstances.
Imagine that you fell asleep at the beginning of the year and woke up at the end of 2020. When you wake up, there are some things that would immediately feel different.
2020 is a year we’ll all remember though in many ways we want to forget it.
1:42 - In the News: Expansion in the US
2:24 - Recent Market Performance
5:07 - Patience: Why This Election is Different
6:52 - Elections Through Inaugurations: Should You Stay Invested?
As this year exemplifies, stock markets have the tendency to do things we would never expect.
1:15 - In the News: What Employment Can Tell Us About Economic Recovery
2:52 - Stock Market Returns in October
3:43 - Value Stocks vs Growth Stocks Historical Returns
5:19 - Why Do Value Stocks Tend to Outperform Growth Stocks?
9:37 - What Should I be Investing in Now?
Aside from COVID-19, what represents the biggest risk for investors in the second half of what is turning out to be a historic 2020?
Since we were unable to answer all of the questions asked during the live webinar, we'd like to share some of the questions and answers in written form.
0:51 - In the News: Dr. Fauci, Employment, September Markets
4:18 - Which party would be better for markets and the economy?
4:45 - How would taxes change under each administration?
6:48 - 2021: What will have the most impact?
1:00 - In the News: Record Budget Deficits, Employment Improves, Back to School, Markets Give Up Some Gains
3:00 - Investing "FOMO" - Fear of Missing Out
7:26 - Predictable Mistake: Chasing Top Performers
While I don’t think this approach is for everyone, I do think many of us would benefit from making some of these decisions.
At the end of 2019, Foster Group’s Investment Strategy Group wanted to create an object lesson to illustrate how hard it is to predict what will happen in financial markets and the world in general.
