Transcript
All right, welcome to Friday, it is a green shirt day today, the S&P 500 was up 1.6% really, really strong day, probably more important to all of us a lot of our targeted indexes, and individual stocks were up even more than the S&P 500, led by Apple and Microsoft, which did really, really well here. And so this is kind of amazing. There was a report today from Bloomberg, that the amount of money that left stock mutual funds over the past week was the third highest Exodus in history. Lots of money going out.
So why are we having a rally, and today was really strong, I would call it a feeding frenzy. Well, what often happens is when all sellers are out, the only people left are the buyers. And so they come in, and we just end up with these nice little rallies. And so sometimes money leaving is sort of a healthy thing for the market, it keeps it from getting too overheated. This whole downturn that we’re having right here, as long as it’s not a change in direction is super healthy for the market is exactly what we needed after July and August being ridiculously good. And so now we have that.
The other thing that’s happening is that there’s a report from JP Morgan talking about how the reopening stocks over the last short period here is have started to do quite poorly. And now the technology, advanced healthcare, those types of things, kind of these growth stocks are doing quite well in relative terms. And so they’re attributing that to the fact that when Ruth Bader Ginsburg passed away, there’s just a lot less expectation that a package for stimulus would be passed before the election, because they’re going to be distracted with the, with the, you know, the politics. So those stocks need the money, right? So you’re talking about companies that need the money in order to really get by and so now they’re selling off?
Well, of course, the stocks that don’t need the money, they’re actually making money in the pandemic, in some cases, making more money are the ones that were in the advanced health care and the targeted technology indexes. And that’s really, again, kind of the flip side. So if the if the stimulus package isn’t happening, that’s not great for the entire economy and what have you. But it looks like all of a sudden now starting to become a good thing for the stocks that can make money in this environment. And so again, I think we’re in the right place. We continue to see it every time money comes back in where’s it go, that goes right to the things that were invested in. So I like that, that could change all this could change at any point in time. But we’re watching so great Friday. Let’s see what happens Monday, see if it gets some carry forward through to the next week. Thank you very much.