Dear Illumination Wealthy Family, Clients & Friends:
I am thankful for much, but mostly for the great relationships with you that I cherish. I wanted mostly to wish you a Healthy and Happy Thanksgiving.
What a year it has been with Covid, Presidential and other elections, market crashes worldwide and rebounds to new highs. In that regard, with the Dow Jones Industrial Average crossing 30,000 for the first time, I had to reflect on my years in the business, starting as a stockbroker in 1972. In November of that year, the Dow crossed 1,000 for the first time. Over the next 10 years that boundary was formidable. But in November 1982 it was penetrated forever. So, the return since 1972 and 1982 was in the low teens annually but irregularly.
So, U.S. stock markets do faithfully go higher over time, therefore, I view the most important part of my job is to keep you in the market, but to moderate your exposure when it gets overheated and add when it sells off in search of bargains. Particularly in these times of extremely low interest rates and likely paltry future bond returns.
With that in mind, and with the Federal Reserve, the Treasury, as well as the President and Congress wanting to re-inflate the economy, we should have the wind at our backs for quite some time. There will, of course, be hiccups. I would expect President Biden to be tested by Iran, China and N Korea, and possibly Russia, or maybe something unexpected. But please remember the above statistics, if that happens.
And, as always, myself and the Illumination Team will be here to help.
With Kindest Regards,
Senior Investment Strategist