Last week, U.S. markets posted their best showing in months. This, on the heels of stock indices dropping so much the prior week that investors feared another bear market was in the offing. By the end of last week, the Dow Jones Industrial Average rose approximately 4% as the S&P 500 and Nasdaq rose about 3%.
There was no shortage of good news as the President signed a record-setting $1.9 trillion stimulus bill. Analysts know what the previous round of stimulus spending did for the economy and stock market. This time, the results are expected to be even more stimulating (no pun intended).
Analysts are expecting certain areas of the economy and stock market to benefit greatly from the fiscal stimulus. Consumer stocks, financials and energy are all expected to improve going forward. This is important because tech stocks have benefitted greatly from the great lockdown as workers and students spent money on computers, software and a host of other techie gadgets. Will this be the time the tech-heavy Nasdaq levels off or even continues to slide? Only time will tell. For now, we’ll watch and report on how things progress from this point.
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The Markets and Economy
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The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Consult your financial professional before making any investment decision. You cannot invest directly in an index. Past performance does not guarantee future results.
Note: All figures exclude reinvested dividends (if any). Sources: Bloomberg, Dorsey Wright & Associates, Inc. and The Wall Street Journal. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
Securities offered through Triad Advisors, member FINRA/SIPC. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser. Resources Investment Advisors. LLC and Vertical Financial Group are not affiliated with Triad Advisors.
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