Wall Street's major averages closed out a strong first half of the year on an upbeat note Friday, powered by technology stocks as Apple achieved a historic $3 trillion market capitalization. Moreover, the Federal Reserve's favorite inflation gauge - the core personal consumption expenditures index - moderated in May on both a month-to-month and year-to-year basis, easing some of the rate concerns that have weighed on markets recently. All 11 S&P sectors ended in positive territory for the day, led by the technology with close to a 2% gain. Notably, the S&P 500, Dow Jones and Nasdaq Composite indexes all notched gains for the week, month, quarter and first half of the year. For the week, the three benchmarks all gained about 2%. For June, the S&P and Nasdaq both added about 6.5%, and the Dow's 4.6% gain was the best showing since November. For the second quarter, the S&P's 8.3% jump was its best quarter since Q4 2021, while the Nasdaq surged nearly 13% and the Dow added 3.4%. Finally, for the first six months of 2023, the Nasdaq exploded 31.7% higher for its best first half since 1983, and the S&P soared 15.9% for its best first half since 2019, while the Dow added a more modest 3.8%.
It really is hard for me to sit and write this quarterly tome as all I really want to put in print is ...'see...I told ya.' But that's not the way we do things on Wall Street. No, we don't take bows, we don't rub each other's face in their useless drivel, and we certainly do not take a bow.
A few great investors, (Peter Lynch and Warren Buffett come to mind,) could take bows but they never have. They just INVESTED, didn't trade, didn't worry about short term swings or noise, and they made money.
On the other hand, the pundits on TV, you know the ones, they love the limelight. They crave the limelight. As a matter of fact, any of you who have been reading my submissions for a few years may have picked up on what I really think of those talking heads that fill their time slots with complete manure. It's not information...its infotainment and Cramer etal. are definitely entertaining but they know nothing about you...they are not there to help you reach YOUR goals...they are there to sell advertising. Oh...and they are generally wrong.
Need an example?
No bowing, and enough on the victory lap. Enough on the idea that if you set a plan and stick with it history is on your side and you will be more successful than those who trade. Enough on the idea that investing is not trading. Enough on the idea that if you listen to talking heads you get what you deserve. Enough on the idea that using the e3 model from Quantum Private Wealth you don't need to worry about the daily ups and downs in the market and thereby take much of the angst out of investing.
Instead, I'm going to close out this quarter's report by talking about the future. Now most of you know I'm an optimistic person. Some have accused optimists as being insane...of being annoying and called the concept of being optimistic actually naive. Naïve optimism is intellectually lazy but on the other side—cynicism—is an equally illogical position that involves making overly negative statements without proper thoughts. And although negativity sells, those that tell you how bad everything is (compared to some other time) are actually the lazy thinkers.
(On December 8th, 2022, when this came out Tesla stock was trading at $173. Today it is $284.)
History tells us there are periods of trouble. The markets go down, there are wars, trade and armed, people freak out, and we see patterns...we tend to believe in these short-term patterns. So it makes some sense that when things look bad people overreact and go into a negative feedback loop that leads them to be even more pessimistic. But that way of thinking is not supported by facts, history or really any form of logic. Its fear. Its our fight or flight mentality. Honed by eons of trying to not be eaten by lions on the plains of Africa. On Wall Street there is no fight...so its flight. And it is not supported by any long-term trends...nor facts.
The future is always uncertain. Only those 'really' talented with a Ouija board can see it clearly. But those of us optimists have a pretty good handle on what it generally looks like. The future that is what we make of it. Sure, there are outside influences. There are politics that always get in the way, neigh sayers that tell you they know better and of course there are those who are just cynics. But if you make a plan, set goals that are realistic, and don't waiver...all the noise, most of the angst and certainly most of the mistakes are avoided.
Stop listening to the infotainers. Stop listening to the traders. Make that plan. Stick with it. YOU will be much happier and almost definitely wealthier. Talk with us about how the e3 model can help you achieve your goals and lower your economic anxiety.
Information contained herein does not involve the rendering of personalized investment advice but is limited to the dissemination of general information.
A professional adviser should be consulted before implementing any of the strategies or options presented.
(In case you missed why I'm having a hard time not taking a victory lap, here is a quick link to my year end and first quarter blogs: