Stock markets rose strongly over the month and closed October up over 3% on average. Leaders in the strong returns include technology stocks, utilities, large company stocks, and international stocks. Health care, biotech, and small company stocks lagged and bonds averaged flat.
Fortunately, it is our improved economy that is fueling this strong stock market. Political games, proposed tax reform, weather disasters, social tragedies: none of it has any lasting impact on the stock market. A strong economy with low unemployment, wage inflation, and manufacturing increasing: this is the backbone of a bull market. This market trend will eventually shift and the cycle will reverse as it always does. When it seems time we will shift stock gains to safer investments. Until then we can continue to capture gains in this long bull market without taking on unnecessary risk.
Some glorious foliage extends on into November. Whatever the winter brings it cannot change these days of vivid color, bright blue skies, and warming sun that came as welcome gifts. The dark season is upon us with the shift to daylight savings time this weekend. To capture today’s bright images and store them for a dreary time, like creatures storing food against the days of scarcity.
