Has the Stock Market Rally Left You Behind?

Are You Missing the Market Rally?

Some people recently may feel, “The stock market seems to be doing so well, but I’m not participating.” A closer look behind the headlines helps tell the story.

A CNBC study found that between the stock market high on February 19, 2020, and the new high on August 18, 2020, only 38% of S&P 500 stocks posted gains. By contrast, 62% of stocks showed losses.¹

The best-performing sectors over this six-month period were consumer staples, health care and information technology. Portfolios overweight in these sectors likely outperformed the broader market.

Meanwhile, financials, energy, and utilities lagged behind.¹

Each year, some companies outperform the market while others fall short. This year, the gap was unusually wide. For example, the Nasdaq composite rose 26% through August 21, 2020. In comparison, the S&P 500 increased about 5%, while the Dow Jones Industrials posted a slight loss.2

Focus on Your Goals, Not Just the Market

Investors need to remember: it’s not about short-term market performance. The key is pursuing your financial goals based on your time horizon and risk tolerance. Weekly or monthly market movements are interesting but shouldn’t dominate your decisions.

For more insight into market trends and investment strategies, reviewing historical performance and volatility can help guide smarter decisions.

If you want to revisit your goals or are second-guessing some of them, give our office a call. We’re here to help you stay on track toward financial success.

Important Information

Investing involves risk, and the return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results. The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and considered a broad indicator of the performance of stocks of technology and growth companies.

Disclaimer:

We develop this content from sources we believe provide accurate information. This material is not intended as tax or legal advice. Please consult qualified legal or tax professionals for guidance specific to your situation.

FMG Suite produced this material to provide information on topics that may interest you. FMG Suite, LLC is not affiliated with the named representative, broker-dealer, or any state- or SEC-registered investment advisory firm.

Finally, the opinions expressed in this material are for general information only and should not be considered a solicitation to buy or sell any security.