Weekly Market Recap
Election? Wait, you mean there’s an election going on right now?
If you’re like me, you’ve got election exhaustion right about now. The TV ads, the radio adds, and the e-mails have reached fever pitch levels. A friend told me yesterday he would be glad to see Wednesday just to get rid of the political e-mails popping up in his inbox on a daily basis. We won’t make any more comments about the Election until it’s over. Our general advice remains the same as it has throughout this crazy election season – stick to your long-term investment strategy. We’ll be able to shift gears once we know more about Fiscal Policy in a few weeks.
While there has been much trading on angst of late, the underlying economic fundamentals have not changed. Corporate earnings were on a record pace in the 3rd quarter and the U.S. economy is functioning normally, thanks to the consumer. The National Financial Conditions Index (NFCI) has barely moved over the last 6 weeks and has steadily remained below zero – which means the economy is at a healthy level. Investors are more focused on the noise rather than how well the economy is functioning.