Transcript
Hello, everybody, welcome to Tuesday, the S&P 500 was up 1.05% today, which was great technology and our targeted indexes, in many cases led the way and did even better, which is good for us. And I think, again, I want to re-emphasize the fact that there really isn’t any place else to go, we’ve seen technology and advanced health care outperform the overall market pretty steadily since the recovery back in March, we have had a poor month in September. But really, there’s nowhere to go with the money, we’re not seeing it move into these reopening stocks. And we’re and we’re really, you know, locked in to where you can put the money.
If you go to the bank, they don’t pay anything, if you buy bonds, that’s not paying much. And you know, you want to buy some of these other stocks that are beat down the airlines and all those things, they’re still struggling. And with no stimulus package, they’re going to continue to struggle, actually, until there’s a vaccine or a cure. And so that really doesn’t leave a lot of places to go homes are doing well. You know, and so that’s an area that money is definitely going to be going to, and then you know, technology and advanced healthcare to the segments that are doing very, very well, a couple other segments doing decently also. But it’s really kind of narrow, it’s just the way it is. And so even when that sells off, what I’m watching for is rotation. Are they moving over to these other stocks? And the answer is no, not that I can see.
And so I do think it has to come back at some point in time. And we’re seeing that, you know, we saw some last week we’re seeing some this week, slowly, but surely people are coming in, you know, Apple might drop a punch, but then people start to buy it again. And I think that’s really powerful. Just one comment, I had a client talk to me about, you know, why do we put up with all this madness in the market? Why don’t they just put it someplace, and you know, and try to get by? Well, if you go back to say 2000, the beginning of 2000. And let’s say you needed $50,000 a year to live off of according to smart assets, their inflation calculator, you need about 76,000 to buy those same things today. That’s a big difference. And that’s, you know, not that long ago, 20 years, if I take that same $50,000, and I put it into the S&Panguard S&P 500 Mutual Fund on January 2000, that’s now worth about $163,000. That’s a big difference.
And so, and this is a terrible timeframe to best January 2000, was right before the big.com crash, then we’ve just barely got back to and then we had the 2008 crash and then we had this huge run up and then we had a pandemic. And even then the S&P 500 turned $50,000 to $163,000. So I do think it’s important to focus on some of the long term, because you’re going to need that here in the short term to get through this kind of volatility that we’re going to have because of the stimulus package in the presidential election period. So hang in there, I think we’ll be okay. I will look forward to seeing what’s going to happen tomorrow and I’ll talk to you then. Thank you very much.