It’s certainly been a volatile few months since the pandemic settled upon us. After the S&P 500 closed at a record high on August 18, fully recovering the losses from the COVID-19 selloff, the market rose to a new high of 3580.84 on September 2. Lest investors become too giddy, the ride was mostly downward from there, largely due to the weakness in technology stocks as the FAANGs (Facebook, Amazon, Apple, Netflix, and Alphabet (aka Google) exert an outsized influence on the market due to their size. There’s some room for a bit of optimism, as the economy is showing a slow recovery, although the pace of that recovery is declining. The Federal Reserve signaled that it plans to keep rates low until 2023 to bolster the economy, which is also good news. However, there could be significant volatility ahead. October will likely be consumed by the upcoming presidential election, and it remains to be seen whether COVID is going to make a resurgence as flu season approaches, the weather cools, and people spend an increasing amount of time indoors.
In our first article, Symmetry Partner’s Casey Dylan, Director of Investment Communications, looks at the continuing conundrum of value investing. We move on to a look at Medicare and some of the pertinent facts you should know before you enroll. While no one can predict the outcome of the November election, try though they may, everyone has an opinion on the potential impact to tax policy. Our third article discusses some steps you can take to optimize your tax strategy today, regardless of which candidate prevails. As always, our advice on investing and elections is stay the course, and not try to predict what may or may not happen to markets. A short-video, The Impact of Elections on Your Portfolio, reinforces the importance of staying focused on the long term.
For those who enjoy a company pension plan, our next article offers some advice on what to do with the plan at retirement. Next, we take a look at large cap stock performance and why bigger isn’t necessarily better. Finally, to help you enjoy the fall, we’ve included a final piece with tasty recipes to take advantage of the autumn apple harvest.
Articles of Interest
Symmetry Perspective: The Conundrum of Value
This informative piece tackles the topic of value investing, reminding us that in the 83 ten-year periods starting in 1936, growth stocks have outperformed value stocks only eight times. We can’t predict when value will outperform growth again, but many investment professionals believe that it could be soon. The article is a great reminder of why we tilt to value, as well as other factors of return.
11 Things You Must Know About Medicare
There are a lot of decisions to make when you retire, and how you’ll manage your healthcare is one of them. You’ll need to enroll in Medicare, which is not as straightforward as one would hope. There’s an alphabet soup of choices: Part A, Part B, Part D, and supplemental plans you can choose as well. Here are 11 things you should know to make the choice that will meet your healthcare needs.
Tax Strategies to Embrace or Avoid Before the November Election
While no one can predict the outcome of the election or the changes in tax policy that could follow, there are strategies you can deploy now to position for the coming year. For example, an IRA conversion might be appropriate. Another simple but effective strategy leverages a provision in the CARES Act that allows 100% of charitable donations made in cash to offset income. Read on to learn more about what you can do now to optimize your tax situation going into 2021.
Impact of Elections on Markets
And as a reminder that the impact of elections on markets is unpredictable and usually insignificant, here is a short video.
What Should You Do with Your Company Pension When You Retire
The company pension may not be as ubiquitous as it once was, but if you’re lucky enough to have one you’ll have some decisions to make when you decide to retire. Planning for a pension can be more complicated than planning for an employer-sponsored 401(k), and you’ll have some decisions to make. However, the range of decisions can vary significantly, as each pension plan has its own unique rules regarding when you can access your money and how. This article looks at how these choices can impact your retirement.
Why Investors Might Think Twice About Chasing the Biggest Stocks
When companies balloon in market capitalization and join the ranks of the biggest stocks in the market, their stocks can rack up impressive returns. But once stocks hit the top ten in terms of market cap, performance often isn’t what investors have been expecting. This research looks at the performance of these stocks from 1927 to 2019 and offers up some surprising results. Today’s winners are rarely tomorrow’s.
67 Easy Apple Recipes
October means apple picking! Not even COVID can stop an autumn apple binge, although you may have to schedule an appointment at your favorite orchard this year. But what’s a small inconvenience when you’ll be leaving with a bushel of Gala or McIntosh or even a Macoun? Read on for a raft of recipes to take advantage of the season’s bounty. Whether you’re thinking of pie, an apple brown betty or creative ways to use apple cider, you’ll find plenty of ideas.
Symmetry does not provide tax or legal advice and nothing either stated or implied here should be inferred as providing such advice. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.
Symmetry Partners, LLC is not affiliated with any firm mentioned in this material.