Transcript
Hello, everybody, welcome to Friday, the S&P 500 actually ended up today, but just barely .05%. Not much of a gain for the day, it was a bit of a roller coaster, you know, so far for most of this recovery, wherever it started off in the morning, it kind of ended up you know, if it was going up, it went up, if it’s going down in this little timeframe that we’ve been in here, now, we’ve been a lot more rollercoaster ride. So we were up this morning, and then we fell, and then we ended up rallying at the end.
One key thing is that when we did fall, we fell back down to the support level that was established back in July, we’ve hit that a couple times here this month, it’s been holding up very well. And there’s been some pretty strong movement off of that point. So there’s buyers coming in at that point right now. And so that’s really important to understand. And generally speaking, you know, these markets, they have these big runs, and then there’s some selling that happens, kind of creates a little psychological damage. And the markets don’t come back really fast. If you remember, June, alright, so June 9 was kind of a high at that point in time. And then June 11, the market dropped almost 6%. Well, it took until the 30th, before the market started to move again. But when it did, we ended up with July and August where it went up almost every single day. And we had a really good run during the summer.
So now we’re a couple months later, we’re kind of doing the same thing. And if we are going to have another run, this would be a normal process to have this up and down kind of churning. And so if you can kind of, you know, turn it off in terms of worrying about it, I think, you know, that works. Now that turning could turn into, you know, a downturn in a reversal of direction, and we’d have to watch for that and be careful of that and deal with that. But that’s not happening yet. Right now, all we’re looking at is exactly the same thing that happened in June so far. And so again, if we’re going to have a nice run up, you kind of need these sideways, churning motions. volatility is up, there’s a thing called the big switch as a volatility indicator, it’s up. And so expect some more volatility here just to be part of this process.
You know, we do have the presidential election and the stimulus package, there’s all kinds of news that’s happening, but volatility is you know, a normal part of this process and this churning and and whatnot, too. So we’ve got the Federal Reserve helping we’ve got zero interest rates, we’ve got homebuilding taking off, which is a huge deal. We have, you know, the right stocks in our portfolio at this point in time that are making money. You know, they’re they’re involved in the right area. So I think that things are okay here. And I want to make sure that everybody feels pretty comfortable. And you have a good weekend and let’s see what happens next Monday, and I will talk to you then. Thank you very much.