It's almost over...
During July 2016, Pew Research reported almost 60 percent of Americans were suffering from election fatigue. They weren't uninterested in the election. They were just worn out by never-ending news coverage that focused on candidates' comments, personal lives, and standing in the polls rather than their moral character, experience, and stance on issues.
Last week, U.S. election news overshadowed positive economic data causing U.S. stocks to lose value as investors shifted assets into safe havens. Early on Friday, the Bureau of Economic Analysis released gross domestic product data, which reflects the value of all goods and services produced in the United States during the period. Initial estimates suggest the U.S. economy grew at an annual rate of 2.9 percent in the third quarter of 2016, an improvement on second quarter's 1.4 percent growth. Consumer spending continued to be the primary driver of growth in the United States.
Markets moved higher on the news, only to retreat when the Federal Bureau of Investigation said it is looking at new evidence in the Clinton email investigation. Financial Times wrote:
"Mr. Trump, Mrs. Clinton's Republican challenger, had fallen dramatically in the polls in recent weeks: market strategists said this had eased uncertainty given the real estate businessman's controversial views on trade and immigration. However, the news of the new probe - just 11 days before the presidential election - has sparked fresh tumult."
Financial Times indicated the CBOE Volatility Index (VIX), a.k.a. the fear index, moved higher on Friday. The index measures the anticipated volatility of the Standard & Poor's 500 Index over the next 30 days. In addition, U.S. Treasury yields, which had been increasing on rumors the European Central Bank might begin to taper its quantitative easing program, dipped lower.
The next few weeks are likely to be bumpy for investors. During times like these, it's critical to keep your eye on your long-term financial objectives. We've weathered volatile times before, and we will get through them again.
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Data as of 10/28/16
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1-Week
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Y-T-D
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1-Year
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3-Year
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5-Year
|
10-Year
|
|
Standard & Poor's 500 (Domestic Stocks)
|
-0.7%
|
4.0%
|
1.7%
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6.5%
|
10.6%
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4.4%
|
|
Dow Jones Global ex-U.S.
|
-0.6
|
2.1
|
-1.5
|
-3.2
|
1.0
|
-0.6
|
|
10-year Treasury Note (Yield Only)
|
1.9
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NA
|
2.1
|
2.5
|
2.3
|
4.7
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Gold (per ounce)
|
0.6
|
19.8
|
7.9
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-2.2
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-6.1
|
7.7
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Bloomberg Commodity Index
|
-0.2
|
9.4
|
-2.0
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-12.2
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-10.7
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-6.4
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DJ Equity All REIT Total Return Index
|
-3.3
|
5.2
|
5.4
|
9.1
|
11.1
|
5.0
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S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, Barron's, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
