A Market Deserving of Thanks and Gratitude

If you have money in the market, and I know you do, then you have a lot to be thankful for this holiday.

Yesterday, the Dow Jones Industrial Average closed above 30,000 for the first time ever, a clear indication that investors are seemingly laughing in the face of the pandemic. And rightly, they should.

I say that because although there are always going to be threats to your money whenever you put it to work in financial markets, the overwhelming trend in market history is that in the long run, the bulls will reign supreme.

This bullishness on the long-term fate of the markets is something to keep in mind as we celebrate this most unusual Thanksgiving, as it’s truly a reason to be thankful.

I mean, just look at what markets have had to deal with this year. The coronavirus lockdowns in the spring caused stocks to plummet. Then the Federal Reserve and Congress stepped in with monetary accommodation and fiscal stimulus, and markets shook off the pandemic punch and came back off the canvas all the way to yesterday’s new all-time highs.

Yes, there are potential market obstacles ahead, including the rise in the number of COVID-19 cases in the United States and abroad; the likelihood of more economic lockdowns over the holidays, the still-unresolved deal in Congress over the amount of stimulus and the still-undecided party control of the next Senate.

Yet on the positive side, we have a very accommodative Federal Reserve, an extreme “dove” on stimulus in Treasury Secretary nominee Janet Yellen, improving economic data, and most importantly — the likelihood of several game-changing COVID-19 vaccines coming to market very soon. If these vaccines are a success, life could be back to “normal” by spring 2021.

So, when you sit down to Thanksgiving dinner tomorrow, don’t forget to give thanks for this remarkable resilient market — because this market deserves your thanks and your gratitude.

Now, recall that last week we added the Invesco S&P 500 Equal Weight ETF (RSP) to our Tactical Trends Portfolio (TTP). That fund is off to a solid start, with the fund up nearly 3% since last Friday’s buy. If you have yet to add RSP to your TTP holdings, please do so today

Finally, I want to wish you and your loved ones a very happy Thanksgiving. And if you want to learn more about how thankful I am for you, and for those in my life, I invite you to read my special issue of The Deep Woods, “Giving Thanks and Naming Names.”

Cheers!