Recap | Week Ahead | Election and Fed Meeting

“The four most dangerous words in investing are: ‘this time is different.’” – Sir John Templeton

Last week's market recap

The S&P 500 closed the week down -1.35%. Year-to-date the index is up 21.47%
NASDAQ closed the week down -1.50%. YTD the index is up 22.21%
U.S. Aggregate Bond index closed the week down -.61%. YTD the index is up 1.40%
10-Year Treasury Rate was increased, ending the week at 4.37% up from 4.25% the prior week
- Fed Funds Target rate remains at 4.75-5.00%
The 1-Year Treasury is yielding 4.25%
A 6 Month Treasury is yielding 4.43%

The week ahead:

U.S. Election
Fed Meeting (Rate cut is expected)
Earnings: Palantir, Novo Nordisk, Toyota, and more

Election:

A reduction of uncertainty is almost always a positive for asset prices.

It may take days before counting ballots is finalized. This could lead to increased volatility, but after we know the outcome of the election, markets should revert focus to the fundamentals. Strong earnings, along with the Fed easing pave the path for U.S. stocks to stay resilient.

Even If the “other” person is elected, most investors should remain diversified and allocate for a longer-term uptrend in equities.

As always, let us know if you have any questions.

Best,

CRA Investment Committee

Matt Reynolds CPA, CFP®

Tom Reynolds, CPA

Robert T. Martin, CFA, CFP®

Gordon Shearer Jr., CFP®

Jeff Hilliard, CFP®, CRPC®

Joe McCaffrey, CFP®

Phillip Tompkins, CFP®

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