Wall Street bets against companies all the time, thinking that they are overvalued, destined to fail, or both. The reality is that at any given time, the big companies are usually getting a lot of attention from institutional short-sellers.
The themes that drove the markets were positive economic data, talk of another stimulus package and the first COVID vaccines being distributed around the world. Yes, there was more election noise throughout the month, but that played less of a role versus the month before.
The third quarter of 2020 was Global equity markets continued their rebound from earlier this year, despite struggling in the final month of the quarter. Among the S&P 500, 70% of stocks had gains in the third quarter. And of the 30 companies in the DJIA, 24 of the 30 were positive this quarter too.
Remember when 401(k) sounded like something only a chemist knew about? Now we all receive 401(k) statements routinely – including information about fees. High 401k Fees can introduce a tremendous drag on your investment returns over the long term.
Global equity markets continued their rebound from the dismal first quarter of 2020 and by the time the second quarter closed, the major U.S. indices had marched to record quarterly gains.
Rebalancing is an exercise that involves selling the investments that have appreciated and buying the assets that have gone down in order to bring your allocations back in line with your original portfolio design. Rebalancing is not quite as simple as it sounds though – it’s as much a science as it is an art.