Where Do You Think This Stock Market Is Going?

Marianna Goldenberg of Penn Wealth Planning has answered this question in her weekly commentary which I always find to be informative and insightful. She stated:

"If history is any indication: The fourth quarter of mid-term election years is almost always favorable for stocks. The market’s reaction to mid-term elections, as uncertainty fades, has almost always been positive, with fourth quarter gains as measured by the S&P 500 index averaging 8% in mid-term election years. The only two exceptions to the gains in the fourth quarter of every mid-term election year since 1950 were 1978 and 1994, when the Fed was hiking rates aggressively, a critical factor that is highly unlikely to take place this quarter. So far, stock market performance in 2010 has tracked the typical pattern for U.S. stocks in mid-term election years, albeit with a bit more than the usual volatility."

For those who wanted to know the answer to our question, this explaination might be as good as it gets. Contact us for your estate planning, probate and elder law needs at www.ythlaw.com

Crystal Ball - What's the best investment of them All

On Monday evening, I attended an annual investment briefing from one of our national banks. I always find it interesting to listen to the economic forecast from economist and investment strategist; those whose job it is to study the market. Given the bleak conditions we have experienced over the last year or so, the bank's forecast (unlike others I have reported on) predicted brighter news on the horizon as demonstrated by the rise in the S&P 500. Though the increases have not been monumental, at least it is an upward movement.

The question still remains how does all of this affect you, the consumer. Some have remained in the market because, well, what else could one do but wait it out and hope for the best. Now there is even a suggestion to be bolder in the market by engaging in alternative investments. This would be in addition to a traditional market portfolio of stocks and bonds. It would encompass private equity, private real estate, natural resources and hedge funds. For me, in such uncertain times, the low risk/some return works better than high risk/high return, maybe. How can a person (the consumer or investment advisor) carefully select any investment these days? Oops, my crystal ball has a crack....can you spare yours???

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