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Market actually punched through its 200-day SMA today for the first time since it fell through it. I had this pegged as a trading rally and it was looking that way but that may no longer be the case. We have 2 things ahead that are going to cause problems. One is the election. Two is the fallout from unemployment. There are a lot of layoffs that will come in August and September.
All in all it's looking like the lock down was overkill and though at first we didn't know that we are seeing in the states that are opening up a willingness by the consumer to not sit inside. The cloud now will be the perceived fear of the dreaded "second wave". Some have already pre-determined it will be much worse than the first wave though they have no data to substantiate that and the fact the first wave was nothing like we thought it would be.
I think as we approach the election you might be wise to take some off the table or hedge. It's going to be super dicey if Trump loses because no one really knows what Biden will do. Assuming Biden does win we will have to see what type of tax hikes, etc. he throws at businesses and such.
Now, long, longe term just keep putting your money in. But if you're a trader or if you are getting close to retirement then this election cycle might be one to sit out.
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