Dear Clients & Friends,
Today we write simply to wish everyone a happy and , healthy holiday weekend. However, it would not be our style to leave you without a few interesting points to ponder during your day off.
1) Yesterday (Thursday), the tech sector sold off deeply. Apple lost $180 Billion in market capitalization (stock market value). That was the largest single day drop in market cap ever and is greater than the annual GDP of more than ¾ of the countries on planet Earth.
2) As we have begun our election year research, we thought we’d share some facts about the stock market performance relative to which political party occupies the White House. There are several factors that make this chart imperfect, such as time between election and executive action, time between action and results, and the majority party in Congress. (We wrote extensively about this in 2018: https://www.morwm.com/post/party-vs-market). As a reminder: the stock market is indirectly rather than directly correlated to the economy. Here is the data since WWII.
And for fun:
3) The oldest stock exchange in the world is the Amsterdam Stock Exchange which was established in Antwerp, Belgium in 1460.
4) The American Stock exchange was originally called “The Curb” because traders first started on the city streets of New York, standing “by the curb.”
5) Historically, September is the worst month for the US Stock market and October is the most volatile month. So, in this election year with COVID 19 upon us, the next two months should be interesting to witness.
Have a lovely, peaceful, and rejuvenating holiday weekend.
- The MORWM family