2020 Economic Milestone

On November 24th, 2020, the DOW closed above 30,000 for the first time in history. Why should we pay attention to these milestones?  They are psychological confidence builders for investors. Historically speaking, once markets have reach that high, they usually have less resistance to go higher.  Even though 2020 was crazy, take a moment to recognize this important success – markets are at all-time highs. 

What does this mean for the future?

Sometimes investors will shy away when the markets reach all-time highs because they feel it is too high and it will probably drop. However, historically speaking, markets usually go higher after milestones like this.

While there is a lot of uncertainty; there is also a lot of upside and optimism. We will very likely see a huge lift in the economy and markets when the Covid-19 crisis dissipates with the vaccines becoming available. It’s likely to have a quick and dramatic economic recovery, even higher highs. This is why it is very important to be positioned and have a strategy for what lies ahead.

How will politics affect markets and the economy?

Inserting a new president will create uncertainty and maybe market volatility, but only temporarily. Wall street will adjust quickly to new policies. There are some policies that corporate America and the economy will respond favorably to, for example, less friction in international trade, with fewer tariff’s and so forth.

Investors should work with a fiduciary advisor with a Registered Investment Advisor.  Advisor should be experienced and competent in portfolio management, as opposed to selling investment or insurance products.

What kind of investment strategies should I have?

First, make sure you have a written strategy.  This is not the time to unwittingly put money in investments and “hope” for the best.  Hope is not a strategy. In uncertain times, it is very important to have a liquid, low cost, and risk-managed portfolio with an active, ongoing strategy.


What resources are available to help make decisions on retirement and investments?

Resources are available at StrategicUtah.com. There, you can find a “S.O.S.” service, Second Opinion Service, useful for making any big retirement, financial or investment decisions. Use the SOS service, and to provide you with a complimentary, thorough, written analysis of your situation, no strings attached and no obligation.

At StrategicUtah.com you can also obtain a complimentary Strategic Retirement Score. Take the SRS test and measure the completeness and readiness of your retirement. It will lead you through a check list of all the necessary financial, legal, tax and retirement items to illustrate how prepared or under-prepared you may be.

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