As measured by the S&P500 index, the US stock market is up 78% from its March 2020 low. That is the best one year stock performance in many decades. This in the midst of a global pandemic that has killed almost 3 million people and counting. Astonishing!
Where will stocks go from here? Of course, experts are divided and no one knows the answer. As stock market investors we must accept that markets can drop any time and frankly, it is quite a surprise that we haven't seen any pullback to date in the course of this incredible rally. And there are risks, not the least of which is the path of COVID-19 variants. But the US economy is bouncing back and as more Americans are vaccinated, the recovery should continue to strengthen. On both sides of the border, the recovery is being fueled by massive government spending, super low interest rates and continued "printing" of money which has to be dialed back at some point. But, whichever direction the market turns in the short run, I believe stocks will continue to deliver good returns to patient investors in the long run.
I remain committed to helping all Canadians learn about lower cost DIY, AIY and Robo investing through my book, emails, webinars, speaking engagements, etc. But, as announced a few months ago, I am personally advising a small number of clients based on the principles described in Beat the Bank. This service is best suited to investors with portfolios in excess of $1 million. All of my clients are benefitting from very substantial fee savings. If this service might potentially be of interest to you, just reply to this email and we can discuss.
Finally, thanks to you for spreading the word about Beat the Bank which continues to help thousands of Canadians invest smarter.
Tune in for a guide to ETFs and investing strategies for potential long-term success. View in a browser Fidelity Fidelity Log in Creating a portfolio with ETFs: Why and how Creating a portfolio with ETFs: Why and how