As for the stock market specifically:
Well, October was October, and man-aged to close out the month with a down week. The turnaround from the beginning of the month was stark. The month started off with a rally to near record levels, and ended off multiple percentage points from the end of September. Last week was the worst pre-election week on record.
Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.
On a general note:
The Department of Commerce announced the US Gross Domestic Product grew at an annualized rate of 33.1% during the 3rd quarter, or 7.4% from the second quarter. This was the highest growth rate since the statistic came into effect in 1949. From my perspective – which counts since I am the author of this column – the actual numbers for the 2nd and 3rd quarters are meaningless given circumstances. Overall, the economy is about 3.5% smaller now than at the end of December 2019.
The Commerce Department announced that September Consumer Spending rose 1.4% in September, which was well-ahead of the anticipated gain of 1.1%. Once again, the rumors of the demise of the American consumer are false. An important aspect to this report is that it is unaffected by stimulus programs that ended in August. Much of the new spending went to automobile purchases, gym memberships, and doctor and dentist visits. Overall, consumer spending is about 2% lower in comparison to January 2020.