Coming Soon: 2021

The Dow Jones Industrial Average eclipsed 30,000 for the first time ever. It has been an impressive rally from March’s low, when the economy was locked down, unemployment was soaring, and the economy was contracting at its fastest rate in history.

A bitter election is over. We have a new President. Talk of civil strife pre-election didn’t materialize. We have a degree of certainty where uncertainty once existed. In addition, the
announcement of at least two vaccines for Covid-19 received a very warm welcome from investors.

No one knows when we might hit 40,000, but a 33% advance is what’s needed to push the Dow to the next milestone.In a broader context, what does this tell us? Stocks have a long-term upward bias, which is a piece of the well-diversified plan we recommend for you.

History repeats itself

Of course, markets don’t climb in a straight line. Volatility is inevitable. That goes without saying. March’s decline was short, but violent. However, as we’ve repeatedly witnessed, market corrections and bear markets eventually come to an end, and major market indexes climb to new highs.

Though we may see more volatility, the straightest line to your financial goals hasn’t changed. The financial plan is still your roadmap forward.