Obsidian Market Update 10/8/21
Last week we talked about how the stock market often suffers in September. This week, we’ll look at what October and the fourth quarter historically brings. Then, we’ll share some uplifting information about how 6 in 10 Americans feel more financially confident than they were before the pandemic.
The fourth quarter is usually positive, with gains four out of every five years since World War II. Most years, the S&P has gained at least 2%, with an average of 5% in the fourth quarter.
Many strategists expect stocks to eclipse recent highs as we move into the end of the year. The first trading session in October started on a positive note, with the S&P adding 1.1%, the Nasdaq adding 0.8%, and the DJIA up 482.54 points.
Even though we know what the historical trends may indicate, we take an integrated, diversified, and unique approach designed to achieve your individual goals no matter where we are in the market cycle.
Given all of that, it’s good to know that 60% of Americans feel more financially confident than they did before COVID. This is thanks to new spending and saving strategies that were picked up during the height of the pandemic in 2020. The lockdowns meant some people weren’t spending as much money on things like travel or nights out as they usually do, and when reopenings started happening in the spring of 2021, they felt they’d established more financial responsibility.
According to the survey done by Laurel Road, the top financial changes people made are:
- Began using a new method of budgeting (apps, spreadsheets, etc.) – 40%
- Created a new savings goal – 31%
- Now budgeting for the first time – 30%
- Spoke with a financial advisor – 24%
- Planning to pay off more of my student loans – 20%
We hope you and your family are feeling financially confident, too — and if not, please give us a call! We can help.
With that, we’ll see you all next week. Happy October, everyone!
How We Help
One thing we love to help clients with is business continuity management. We are working with a business owner who has three separate companies with three different ownership groups, including an international contingent. We are assessing each business and the nuances, including the dynamics between the three ownership groups. They have already passed through a generation, and now we’re in the process of interviewing and preparing detailed continuity plans and instructions should something happen to the business owner to ensure that his family will be able to continue operating each individual business successfully.
Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member FINRA/SIPC. Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.