WHERE WE WERE
The month of October tends to be the most volatile month of the year with more 1% or greater moves in the market than any other month. Thankfully, those moves have resulted in October being the third best performing month on average. A sustained rally in the market this past month continued these historical trends and even provided investors with a sense of hope in a year where optimism has been scarce. The Nasdaq saw an increase of 3.9% in the month, the S&P 500 gained about 8%, and the Dow saw its largest increase since 1976 at 14%.
WHERE WE ARE GOING
To begin November, The Fed maintained its stance against inflation by raising rates by 75 basis points. Investors were hopeful that Fed Chair Jerome Powell would hint at a change of pace in the near future, but the Fed continues to believe that raising rates will be necessary until inflation has slowed significantly.
With midterm elections occurring, many investors fear a change in control of Congress could affect the economy. While it is understandable to think this might happen, there is no evidence to support this claim. The market has historically been indifferent to who controls Congress. This is good news for investors, especially for those who take a long-term approach, since their plans should not likely require any changes based on the outcome of this year’s midterms.
ADDITIONAL THOUGHTS
In times of volatility, it is of the utmost importance for investors to understand the decisions they make regarding their wealth. Investing without a plan and an understanding of personal risk can lead to unnecessary disappointment. The thrill of investing based on emotions is exciting during the highs but devastating during the lows. Our team is here to help guide you through the investment process using a long-term approach guided by proven market principles.
Sources:
https://www.forbes.com/advisor/investing/stock-market-outlook-and-forecast/
https://www.dimensional.com/us-en/insights/midterm-elections-what-do-they-mean-for-markets
Disclaimer:
Past performance is not a guarantee of future results.
BNY Mellon | Pershing is our clearing and custody provider. Olistico Wealth, LLC, a registered investment adviser. Pershing and Olistico Wealth, LLC are separate, unaffiliated companies, not responsible for each other’s services or policies. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Past performance is no guarantee of future results.