We have all had many unsettled feelings over this past year. So many unknowns have pressed us mentally, emotionally, and economically with the pandemic and months of political banter.

Uncertainty can lead to poor decision making unless one retains a steady resolve and focuses on what matters in the long run. While headlines may provoke fear over the short run, the global marketplace continually marches forward with the innovation and ingenuity of mankind. At WEALTHSTONE ADVISORS, we believe that discipline and patience drive successful long-term investing results. In fact, we employ this view as one of our six enduring Foundation Stones, and we lean into our long standing beliefs when the outlook appears murky.

With an election cycle and a pandemic dominating the recent news cycle, it can become a bit too easy to find yourself feeling consternation over the unknown. However, an understanding of market history can reveal some insights that should ease the minds of those feeling unsettled. The stock market has managed to march higher, regardless of the party in power, due to the constant efforts of corporate leaders and the desire of individuals far and wide to innovate and improve efficiency.

These are the very attributes that drive corporate earnings and compel entrepreneurs to make investments in the future. In the long run, earnings growth is the key determinant for investment success, and we remain focused on the outlook for a resumption in S&P earnings growth that can bolster markets in 2021 and 2022.

As it turns out, we have most likely already dealt with the worst of the pandemic when viewed from the lens of S&P earnings. Third quarter results are looking more favorable than anticipated and earnings revisions for 2021 in economically sensitive sectors have been rising despite negative macro headlines. It often takes discipline and patience to see the light at the end of the tunnel, and we are starting to see evidence that the next phase of the recovery cycle should reveal itself over the coming months. Thus, we remain optimistic about the future. The WEALTHSTONE Investment Committee has continued to meet regularly to discuss the implications of market variables and will continue to use our collective objectivity and experience in managing your portfolio.

As always, please contact me or any member of our team with any questions.

Sincerely,

Norm

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