Days like today remind you just how unpredictable markets can be. After a rough beginning to June (the S&P 500 was down roughly 6% in the first half of the month), the index swung back in the 2nd half to nearly the level it was at the beginning of the month. Today the S&P 500 closed at 1,339. For this day alone the index rose 1.4%.
Reasons for the recent enthusiasm include increased optimism that Greek debt will not default and positive manufacturing reports. As we always say, predictions of short-term stock market movements are of little use. If you are a long-term investor, you would not want to have missed this week in the market. We don’t know when these weeks will come, so we advocate that you look past the short-term movements and stay invested with a long-term asset allocation that suits you.
The stock market is closed on Monday, July 4 for some much needed rest (for all of us). Happy Independence Day!
Harli L. Palme, CFP®