Guys, we’ve reached the end of another crazy month… And as we head into the last month of 2020, we also wrap up what I’ve been calling a “November 2020 rally to remember.”
And with that, there’s no better time than the present to look back and try to get a better grasp on what we’ve seen happen over the past few weeks… and what it could mean for our financial futures.
That said, let’s dive into the November 2020 rally!
It has been one roller coaster of a month… We had major Pfizer Inc.(NYSE: PFE) vaccine news early on. It’s no surprise, however, that the beginning of the month was completely overshadowed by the 2020 U.S. presidential election.
As the world sat back and waited to see who the winner of this heated battle would be, the markets continued to grow. So much positive movement during these uncertain times surprised quite a few investors.
And even though the Biden camp has already started picking out drapes for the Oval Office, President Donald Trump continues to hold his ground, saying the election was rigged against him. At this stage in the election process, Trump’s squirming will only get him so far. Come mid-January, he will need to hand the baton over to President Joe Biden.
In addition to all the political bickering coming out of D.C. the past few weeks, the Dow continued higher and higher, making the November 2020 rally its best month since January 1987.
You history buffs know what happened nine months after January 1987… Yes, I’m referring to the major stock market crash of 1987 known as “Black Monday.”
This is not my way of saying a market crash is imminent, or even a strong possibility at this point. All I’m saying is a lot of people think history has a way of repeating itself. And if they’re correct, we may have some troubling months ahead.
Yes, the November 2020 rally was a heck of a month for the markets. But we can only look backward for so long. We also need to make sure we look ahead…
So today I want to review my market outlook going into December 2020. Join me as I review the November 2020 rally and pull out a few charts that support my thesis that this rally may not be as enthusiastic as we hoped, and why I feel it could be coming back down to earth sooner than we’d expected.