September 22, 2020
To our Clients, Partners, Family and Friends:
It’s “Back To School” week here in Watertown. Same chill in the air. A familiar feeling of settling back into a routine. My son even has a 5pm soccer practice to get to. Like most children in the Bay State, he’ll be starting school online and smiling at his new classmates on the other end of a Chromebook. His Classroom will be Google Classroom, and not up on the 2nd Floor of the Hosmer Elementary School. School playgrounds and cafeterias will be empty.
As we head into the strangest of school years for our kids, there are certainly a few things that come to mind as us parents get back to business. As a team – we completely empathize that this is going to be a stressful time for our clients, our partners, our families and friends as we all wade into the unknown. A few of our thoughts:
Let us know if we need to communicate differently. The days of the in-person hour long review are on pause. We’ve switched to Zoom meetings for many clients and we are so thrilled to still see your faces. For our clients who are parents and business owners – WE GET IT. We have kids and run a small business. We are here for you. Let us know what you need from us as your bandwidth inevitably shrinks.
Don’t let the stock market rebound lull you to sleep. The brightening economic picture helped second quarter corporate earnings beat estimates by an average of 23%, more than in any quarter since FactSet began tracking earnings statistics in 2008. Estimates have risen to the point where analysts expect 2021 S&P 500 earnings to surpass the 2019 level. Clearly good news. But even if the recession may be over technically, the path forward may be challenging. Raytheon, MGM, American Airlines, Coca-Cola, and other major corporations recently announced thousands of layoffs. If lawmakers can’t agree on another stimulus package soon, the road ahead will get tougher.
Your financial plan is built for the long haul. Election season is in full swing—and with that comes the potential for increased market volatility. For our clients about to tackle a transition into retirement over the next few years, your portfolio is designed with your various goals in mind and decades to come. Despite the anxiety of this coming atypical election, your goals and portfolio are best served when you stick to the plan.
A new cycle will begin…maybe has already begun? It is possible we’re in the beginning stages of a new bull market, which suggests additional gains for stocks may be forthcoming. That’s why it probably makes sense for suitable investors to be patient, stick with their target allocations—particularly those with multiyear time horizons—and resist the urge to get more defensive.
Good luck with the transition back to school, to a new season, and to the new norms—and stay safe. As always, please contact us at 781-335-9100 or at info@arsenalfinancial.com with questions.
Sincerely,
Doug Orifice & the Arsenal Financial Team
Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
All data is provided as of September 3, 2020.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All index data from FactSet.
This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
