The third quarter of 2020 continued right where the second quarter left off with a continued upswing in the S&P 500 in both July (+5.51%) and August (+7.01%). The market's largest headline included a 4-1 stock split by Apple (AAPL) and a continued rally in the technology sector. September was a month riddled with volatility and finished down (-3.9%) as the market saw a mixture of Coronavirus-related headlines and suspected profit taking causing some rather large down days. The S&P 500 finished up 8.5% for the quarter and is up 4.1% YTD.
As we head into the fourth quarter, we see a market that is fixated on the continued economic recovery. While the November election results could be a catalyst for volatility, we would like to remind our clients that the long-term value of their investments is not determined by a political party or election outcome, but the investments ability to produce revenue and earnings for shareholders. In the wise words of legendary investor, Benjamin Graham: "In the short run, the market is a voting machine but in the long run it is a weighing machine."