Well, Wednesday starts after several days of the tech stocks being hammered, resulting in the S&P 500 dropping about 7% over the last three sessions. This morning Amazon, Facebook and Apple each rose about 1%, but analysts still believe that, since their way above their valuations a year ago. Amazon is up 70%, Apple 54%, and Facebook 32% vs. an overall 3% gain for the S&P over that time.
Mike Wilson of Morgan Stanley stated “We think there is more downside over the next month but eventually leads to further broadening out of the bull market.” In laymen’s terms, they think the Tech stocks may drop somewhat, while other stocks in the S&P make gains commensurate with the improving economy. We can all hope that this market rally “broadens” as opposed to being concentrated too much in Tech Stocks. Again, I remember 2000 and the dot.com bust.
For most of us, this means “steady as she goes” in our investments. Continuing to put money away, dollar cost averaging, and watching our spending for the year. Hopefully your income hasn’t been too negatively impacted by Covid-19 shutdowns. If you can do that, you can weather most any storm.
Mr. 39 Months