With the election right around the corner, Q3 was another hot quarter for global capital markets. U.S. stocks appreciated considerably, and the bond market’s outlook for the economy improved as the yield curve steepened. At the moment it seems like the markets are expecting another round of stimulus sometime soon. Rumors of different packages have swirled around both sides of the aisle over the last three months. As I write this, there appears to be a strong possibility that a bill is passed by the election. If that doesn’t happen, we may be in for the volatility so many investors are expecting in early November.
This is an odd time, an odd year, and it’s hard to believe that stocks and bonds are both in positive territory after everything that’s happened. But here we are. Now is a good time to remind ourselves of a few core investment principles:
- Diversification is your friend. Both globally and across different asset classes.
- Create a long term plan you can stick to.
- Stick to that plan no matter what.
Easy enough, right? Here’s this quarter’s market summary.