Electoral Overload

336 stocks are down more than 20% for the past month. Only 36 are up more than 20%

independent bay area cfps advisor - sp500 11-7-16

The SP500 made it nine sessions in a row of declines on Friday.  The first time in 36 years. But it is only down 3% over those 9 days, unlike the previous occasions which saw a drop of -7% on average. This shows relative strength..  In the past 86 years, there have been 22 occasions of 9 down days.   Six months later SP500 was up 74% of the time with an average return of +9%.  For 12 months, a rise of +14%. The average loss was -7%. These down streaks have historically been good buying opportunities, Will it be this time?

Sentiment says we are getting close to a bounce as the boat is over-crowded on one side.

fee only independent financial planning advisor - sentiment - 11-7-16

Recent market gyrations are a byproduct of the uncertainty around the election. In two days it will be over and only then are we likely to see what hand Ms. Market is playing. Until then, it’s all noise.