September markets acted predictably for an election year, closing somewhat down. Major market indices lost 4.5-7% with all stock sectors down, particularly energy and tech. Utilities stocks lost the least and bonds were barely down at all. Year-To-Date the Dow is again negative while the S&P holds gains. All indices are up from a year ago.
Historically election year markets show the jitters of presidential election uncertainty in September and October. Once the uncertainty is over, stocks recover. The wild card this year is that we may not know election results right away and the results may well be contested. The historical data for the last contested election, in year 2000, shows stocks continued to slip until that decision was settled (by the Supreme Court) on December 20. Once the election was settled, stocks began to climb again. We endure this short-term market volatility every 4 years.
Open windows usher in the crisp air of the new season. The outside renews the inside, even more essential in this year of enforced isolation. Worrying does not change tomorrow but preparing for what is known strengthens today. An urgency stirs in nature with preparations for the coming season. Working daily for survival, the birds still sing in the afternoon.
