The Prudent Retiree - What's Going On Part XLII
Georgia on My Mind” was written and performed by the renowned Hoagy Carmichael and his partner Stuart Gorrell. The song is generally associated with the great Ray Charles who recorded it in 1960 and performed the sad, poignant song for the rest of his career. The State of Georgia designated the Ray Charles version as the official state song in 1979.
2020 is almost done. Our nation will be glad to leave this year behind. 2020 has been a year of tumult. We’ve experienced a collective national anger, fear, rage and loss of life from Covid-19, partisan politics and an ongoing brutal economic crisis. Confusion has been the order of the day and we don’t seem to have much clarity in the way forward.
The market is another story altogether. There have been strong gains. There has been a seeming disconnect between the strength of stock prices and what is going on around us. We are always cognizant of the potential risk of events, but we listen to the market. 2020 has emphatically taught us not to confuse portfolios with politics or be guided by opinions of what might happen. The market always tells us what it will do. I’ll say it again, we just have to listen.
Georgia is on the market’s mind. The run-off election for the two Senate seats is January 5th. These elections will determine control of the Senate and the course of President-elect Biden’s policy proposals. Right now, Republicans are favored in both. Prudent Retiree believes continued Republican control is priced into the market right now. They only need to win one seat. Historically, stock prices have performed best when one party is not in full control. Nothing extreme happens and change tends to be incremental. Certainly the Democrats could win both seats. That changes the investment climate and the market’s direction could change. We’ll know soon enough and decide the best course to take.
Charles sang “Oh, Georgia, no peace I find, no peace I find.” Prudent Retiree will not find that peace until we know the Georgia results. We say good-bye to 2020 and wish you all a Happy New Year with a bounty of vaccines and a reopening of America.
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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. Investing involves risk including loss of principal. No strategy assures success or protects against loss.
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