The markets ended the week higher despite what I’d characterize as an extraordinarily volatile news cycle.
We watched a disastrous, poorly moderated, uninformative debate. We learned that the President and First Lady have Covid-19. And now, we have a Congress that is again failing to pass another coronavirus stimulus bill.
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And, yet?
The Dow Jones Industrial Average is up 1.9% on the week (though it fell 134 points today.) And, the Nasdaq and S&P 500 are up 1.5% for the week!
Can the rally continue? The answer will depend partly on how the President fares over the next few days.
Meanwhile, on the plus side, the unemployment rate fell to 7.9% a positive sign that shows Americans can get back to work–if given the chance.
Bottom line: investors should expect much volatility between now and Election Day. Even with promising economic fundaments like job growth, it’s not clear the economic improvements will prove sustainable. Already, sources tell me there is a flurry of business activity that companies and individuals are trying to accomplish before year-end so as to prepare for a potential massive shift away from capitalism–towards high tax, socialist-style policies.
As I’ve said before, if the left is successful in taking over the government, we will be looking at a disastrous economic future filled with higher taxes, more regulations, and less prosperity.
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