Unless you’re a disciplined news junkie, which I don’t encourage you to be, you won’t find a lot of good news about the economy or the stock market from mainstream media.
I don’t encourage you to become news junkies because the toll it takes on our mental health and ultimately our physical health is not worth it. Always remember the goal of news outlets is to get more viewers so they can charge advertisers more for air time. And bad news, sensationalized news, even fake news attracts more viewers.
Today’s message is full of good news. Good news about the stock market specifically, and thereby indirectly good news about your investment accounts.
The stock market rallied for a second straight month. The S&P 500, the index generally regarded as the gauge of the overall stock market, finished the month of May with its best 2-month performance since 2009.
Both the Dow and S&P 500 were up more than 4% in May. That’s on top of April’s big gains, the indices best monthly percentage gains since 1987.
And the rally keeps rolling despite the riots. The Dow passing the 26,000 and 27,000 levels the first week in June.
The S&P 500 peaked this year on February 19th before falling nearly 34% (33.9) to bear market bottoms on March 23rd. And this week, 50 trading days later, the S&P 500 has gained nearly 40% (39.6) for the biggest 50-day rally since 1957.
Of course at some point, expect another pullback before the permanent upward trend resumes. We’re investors, not traders or speculators, so we don’t know when that will be, nor do we care. We’re focused on our long-term goals, knowing there will always be a crisis du jour.
While the details of the next crisis may change, it too shall pass.
In the meantime, we’ll keep living our lives, fully and fearlessly, honoring God, and knowing He’s still in charge.
*Performance data from Wall Street Journal 5.31.2020 & 6.5.2020