Looking Ahead and Planning Moving Forward

Thoughts From Don

What an interesting year this has been. From extreme economic downturn and unemployment due to a pandemic to recovery signs and swings in both directions. The latest GDP report posts a 33.1% jump in the third quarter. The twenty-four seven news and the political and economic commentary can add to the confusion. What we know for certain is that markets don’t like uncertainty. So what should we expect as we move forward?

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Looking Ahead

As we enter the final quarter of the year, will we continue the trajectory of Q3? The economy and the unemployment picture should continue to improve in response to cities reopening and more people getting back to work. There is also talk of a potential vaccine to be available by the end of October, which would help reopening plans.

However, volatility will most likely persist in Q4, and “caution” is the keyword for the remainder of 2020. Factors that could roil markets include Congress’ success or failure in agreeing on additional stimulus funds, continued shutdowns in some states and ongoing protests and violence across the country.

Elections and the actions of our political leaders will also have a heavy impact on the markets over the next few months. Much has been made of the security of mail-in voting and other electoral matters, issues that could lead to messy election results and cast doubt on who will be leading our country.

If you are a long-term investor and are comfortable with your plan, the best course of action is to stay the course. If the past nine months have been too tempestuous for your liking, or if you felt anxious or stressed regarding the markets, talk with your financial professional immediately. If your outlook and risk profile have changed, consider allocating to a more conservative strategy. Your portfolio might lag behind the markets, but you will experience less personal volatility no matter which way the markets move.

Fortunately, we have made it through the bulk of 2020, and 2021 is just around the corner. We are optimistic that markets will move higher as we finish out the year, but volatility will continue testing investor resolve. Your financial professional can provide you with perspective and remind you that better things always lie ahead.

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The personal opinions of Tom Siomades are his alone, and do not necessarily reflect the views of AE Wealth Management, LLC. Nor the firm providing you with this content. The advisory firm providing you with this content is an independent financial services firm and is not an affiliate company of AE Wealth Management, LLC. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and advisory firm are not affiliated companies.