Halloween month ended up not being so spooky for the markets. We hit another record high in October! This bull market just keeps on giving. It’s easy to get complacent when we see the markets continually up every month. We all must remember that there will eventually be a pullback, regardless of the technicals I showed last month. That doesn’t necessarily mean that we won’t hit all those technicals. I simply mean that we sometimes need a reset in the markets to re-evaluate earnings and valuation multiples. Does that mean it happens tomorrow or next week or next year? Now that is the real question. How much will the markets run UP before pulling back DOWN? For all of us who are invested long-term, that shouldn’t matter at all. We choose our risk tolerance and stay the course.
The Federal Reserve cut rates 0.25% which was largely expected and already built into the markets. There is already more talk of another cut in December.
Artificial Intelligence (AI) seems to be completely taking over Nasdaq and tech valuations. We had our first company with a $5 trillion dollar market cap last month. I’ve read that AI might make the original internet valuations look small compared to what it could do to our economy over the next 3-5 years. How exciting and scary at the same time!
Happy Veterans Day to all the veterans out there. We appreciate your service!
Have a great Thanksgiving everyone! Fingers crossed for a great November. I heard the colors are amazing up north right now.
Many thanks to all our clients. We are thankful to have your business.
Larry Mroczkowski
President
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risks, including the loss of principal.