Stocks closed up yesterday, with all of the major indexes finishing near their all-time highs.
Only one more day to go before this year comes to a close. And it will be one for the record books.
While it doesn't look like the push for larger stimulus checks will get done this year, the $600 checks that were approved in the just passed stimulus/relief bill have already begun going out. And the extended unemployment benefits and PPP program are providing individuals and businesses with the financial lifeline they need.
The world also now has another Covid vaccine. The UK approved Oxford/AstraZeneca's vaccine yesterday, with doses starting next Monday.
That makes three vaccines in total (with more on the way). This will further increase coverage and availability. And mark yet another step towards ending the pandemic and getting back to normal.
In other news, the Chicago Purchasing Managers Index (PMI) came in better than expected at 59.5 vs. last month's 58.2 and views for 57.0.
And the State Street Investor Confidence Index catapulted back above the 100 threshold, coming in at 104.1 vs. last month's 90.8. This shows professional investors getting more bullish. While the European component fell -4.6 points to 87.2, the North American component rose 15.9 points to 103.5, and the Asian component rose 17.4 points to 112.6.
In spite of the challenges the rise in virus cases has presented, the U.S. economy continues to rebound.
That was evident in the 3rd and final estimate for Q3 GDP, which was just bumped up from 33.1% to 33.4% for a new record.
That can also be seen in the estimates for Q4 GDP which is expected to come in at 10.4%. And aside from last quarter, that would be the highest quarterly growth rate in more than 36 years.
And full-year GDP for 2021 is expected to be the best in 38 years!
So it looks like there's a lot more good news ahead for the economy.
And a lot more upside to go for the markets.
Hopefully you took full advantage of it this year and cleaned up.
Interestingly, given all of the volatility, the best strategy this year just might have been buy and hold.
Even when the market pulled back, like it did earlier this year with the pandemic, if you had the right stocks with the strongest fundamentals, you would have been just fine. Not only did they hold up the best on the way down, but they skyrocketed on the way up. And you barely would've had to lift a finger.
But buy and hold investing doesn't mean just buying anything and hoping for the best. Too many long-term investors see their hopes dashed when their once promising investment turns sour and they scramble to cut losses. But closer inspection usually shows those stock-picking mistakes could've been avoided with a little extra knowledge at the outset.
Finding long-term core holdings that you can buy and hold and effortlessly cash in when the time comes is an investor's dream. If you want to live that dream right, be sure to read our latest commentary...
Avoiding the 3 Pitfalls of 'Buy & Hold' Investing Best,
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