In our previous blog, we discussed the recent short squeeze events that occurred on Wall Street. In addition to the short stock names, the last thirteen months in the stock market have been a rollercoaster, with the coronavirus pandemic, the federal reserve, post inauguration record market highs, an influx in “TikTok” day traders, and a great deal of record earnings reports. Check out the wild ride the stock market took in the last 12 months.

 

Through all these various events, social media has played a large role. News sources, TikTok, the twitter world, and celebrities have blown up the media, sharing their opinions and beliefs. The Dave Portnoy’s of the world believe one thing, while Mark Cuban, Ja Rule, and TikTok are saying another, that’s what makes a “market”. Remember some of these same people told you to sell at the bottom in March when COVID-19 was hitting. With the strong influence and prevalence of social media, it’s hard to know what to believe and where to get your conflict-free advice from. Remember, these TikTok “experts” and celebrities are not financial advisors and do not have the full scope of your financial situation when they post their advice online.  

We know it’s hard not to get swept up in the media and fads at the time, but we encourage you to drown out the noise and focus on the decisions that really matter. Focus on your long-term investment goals and strategies to make sure your financial future is secure. For those who are involved with short-term investments, remember to only risk what you are comfortable with losing and keep in mind tax implications. Everyone’s situation is quite different, and the media won’t always reflect your personal financial situation. 

When the market is volatile and unexpected events may occur, however, we encourage our clients to try to ignore the investment biases that occur. At Sherman Wealth, we believe that all individuals should have access to capital markets, no matter their financial situation. We encourage our clients to diversify their portfolios, invest fearlessly, but successfully at the same time. We know this last year has been a wild ride and quite confusing for some, so we want to help you understand. If you have any questions or would like to discuss how we can help your current situation moving forward, please contact us at info@shermanwealth.com or schedule a complimentary 30-minute consultation here. 

 

As many of you probably already know, Wall Street was been flipped upside down this week. For those who don’t, what happened? 

Well, this past week, we saw the most heavily shorted names on Wall Street sky rocket to start the year. Most notably, we saw monster moves in short squeeze stocks like GameStop, AMC, Express, Nokia and Blackberry. How did this happen? Will Wall Street Hedge Funds Recover? Will this Continue? Want more details on Reddit? Robinhood? Need help on what to do next? 

Check out our most recent Youtube video to see Brad’s explanation of this wild roller coaster we are seeing in the stock market. As always, let us know if you have any questions or would like to have a more in-depth discussion surrounding these events. If so, please book a free 30-minute consultation on our site. 

Click here to watch the video: https://youtu.be/2ymN8AdCfo0

November was a big month for the stock market, signaling that Wall Street sees better things ahead for the economy in 2021. Between the coronavirus pandemic, the election, vaccine news, and where we were just nine months ago, it’s hard to believe that our stock market is breaking record highs these days. It will be interesting to see how the November rally holds as we move into December.

 

This month alone, The 30-stock average rose 11.8% in November, its biggest one-month gain since January 1987. Back then, the Dow jumped 13.8%. Just last week the Dow Jones Industrial Average traded and closed above 30,000 for the first time.

 

The Russell 2000 remained up nearly 19% for November, putting the small-cap gauge on track for its biggest monthly gain since its inception more than 40 years ago. It was far outpacing the large-cap benchmark S&P 500, which was up more than 10% and on track for its biggest monthly rise since April, while the tech-heavy Nasdaq Composite was up around 11.3%.

And while December is historically a strong month for equities, analysts state that the strength of those November gains suggests a note of caution would be in order. We will continue to monitor how the market plays out this December, but November’s strong rally proves how important it is to stick with your long-term plan. Here at Sherman Wealth, we always encourage you to drown out the noise and biases within the market and stick with your initial plan for the long-term. If you have any questions about your portfolio, please reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute consultation on our site.