GARDNER BROWN ASSOCIATES, INC.
BIO
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Louis A. Gardner, President of Gardner Brown Associates Inc., has been in the Financial Services industry for over 30 years. Over the span of his career he has served as an Executive with three major insurance carriers.
Gardner Brown & Associates, Inc was started in 2008 with the objective to allow our firm to work directly with individual and corporate clients in the vast area of financial advisement.
Louis has been named one of the nation's Best Advisors by Medical Economics due to his vast knowledge and expertise in the area of financial advisement. Gardner Brown Associates is able to assist corporate clients in devising executive, core and voluntary benefits and individual clients in all areas of financial matters.
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From tackling personal decisions to reaching important milestones, Gardner Brown Associates, Inc. guides you on the path to financial success. As a professional financial planning firm, Gardner Brown Associates, Inc. guarantees optimal results based on your specific needs. We are fueled by our commitment to excellence and go the extra mile to make sure our clients are fully satisfied with the services provided. Get in touch with us today for a free financial advisement consultation.
Securities offered through Lion Street Financial, LLC, member FINRA, SIPC. Investment advisory products and services offered through Lion Street Advisors, LLC, an investment advisor registered with the SEC. Lion Street Financial, LLC and Lion Street Advisors, LLC are affiliated companies but neither is affiliated with Gardner Brown and Associates. Neither of these companies provide tax or legal advice. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed.
Check the background of this investment professional on FINRA's BrokerCheck.
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CONTACT ME
(949) 375-2008 (Tel)
BUSINESS HOURS
Mon - Fri: 7am - 6pm (PST)
​​Saturday & Sunday: By appointment only
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THE MONTH IN BRIEF
Inaction on a second American fiscal stimulus bill and a rise in global COVID-19 cases put pressure on stock prices in October.
The Dow Jones Industrial Average, which has lagged much of the year, dropped 4.61 percent. The Standard & Poor’s 500 Index lost 2.77 percent and the Nasdaq Composite slipped 2.29 percent. 1
DOMESTIC ECONOMIC HEALTH
U.S. Markets
Inaction on a second American fiscal stimulus bill and a rise in global COVID-19 cases put pressure on stock prices in October.
The Dow Jones Industrial Average, which has lagged much of the year, dropped 4.61 percent. The Standard & Poor’s 500 Index lost 2.77 percent and the Nasdaq Composite slipped 2.29 percent. 1
All About Stimulus
The perceived progress by lawmakers to pass a new fiscal stimulus bill continued to move markets. When negotiations appeared to be on track, stocks moved higher but retreated as talks stalled.
Investor optimism regarding a second stimulus bill was highest at the start of the month, igniting strong gains as October got underway. Market sentiment was further buoyed by news of advances in COVID-19 treatments and a growing conviction that November’s election may be less contested than initially feared.
COVID’s Influence
As the month wore on, market optimism waned as the window to pass a stimulus bill closed. As hopes for a fiscal stimulus faded, an increase in new COVID-19 cases in the U.S. and Europe continued to sour market sentiment. This caused many investors to contemplate what a second coronavirus wave might do to the economic recovery.
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Strong Earnings
Amid the attention the stimulus talks and COVID cases garnered, earnings season also began last month. By October 30th, with 64 percent of the S&P 500 companies having reported earnings, 86 percent had performed above Wall Street estimates and above the five-year average of 73 percent. 2
These strong earnings results had little effect on a market overwhelmed by large-scale issues. Selling accelerated in the final week of trading with no movement on the fiscal stimulus bill, a bump up in COVID-related hospitalizations, and a reinstatement of partial lockdowns in Germany and France.
Sector Scorecard Pressure
Utilities (+5.05 percent) was the only sector to post a gain in October. Communication Services (-0.34 percent), Consumer Discretionary (-2.73 percent), Consumer Staples (-2.87 percent), Energy (-4.11 percent), Financials (-0.87 percent), Health Care (-3.62 percent), Industrials (-1.44 percent), Materials (-0.72 percent), Real Estate (-3.18 percent), and Technology (-5.00 percent) closed lower. 3
What Investors May Be Talking About in November
The U.S. election will take center stage this month, with the critical concern being whether the election results will be clear and decisive.
Should President Trump remain in office, investors may expect him to follow similar policy initiatives during a second term. If former Vice President Biden is elected, investors will be listening closely to public statements and potential cabinet appointments to gain insight into his policy priorities.
Regardless of who is elected, the markets are expected to look for signs of a new stimulus measure.
WORLD MARKETS
World Markets
A resurgence in COVID-19 infections, new economic lockdowns, and the growing prospect of a hard Brexit sent the MSCI-EAFE Index tumbling by 4.06 percent in October. 4
Countries at the epicenter of the coronavirus resurgence in Europe were especially hard hit, with losses in Germany (-9.44 percent), France (-4. percent), Italy (-6.90 percent), and the U.K. (-4.92 percent). 5
Pacific Rim stocks performed better, as Australia picked up 1.92 percent, and Hong Kong added 2.76 percent. 6
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Indicators
Gross Domestic Product: The economy expanded at a 33.1 percent annual rate in the third quarter, recouping about two-thirds of the pandemic-induced contraction suffered earlier in the year. 7
Employment: Nonfarm payrolls grew by 661,000 in September. Hiring was slightly below expectations, but it was enough to drop the unemployment rate to 7.9 percent, down from the previous month’s 8.4 percent. 8
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Retail Sales: Consumer spending rose 1.9 percent, led by a 3.6 percent jump in motor vehicle sales. It was the fifth consecutive month of higher retail sales. 9
Industrial Production: Industrial output fell 0.6 percent in September after four straight months of gains. Industrial production was 7.1 percent below its pre-pandemic February level. 10
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Housing: Housing starts rose 1.9 percent, as single-family home starts outweighed a decline in the more volatile multi-family segment. 11
Existing home sales increased by 9.4 percent. Tight inventories drove the median home price higher to $311,800, a 14.8 percent jump from September 2019. 12
After four straight months of increases, sales of new homes fell by 3.5 percent. 13
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Consumer Price Index: The cost of consumer goods rose by 0.2 percent in September, with a 6.7 percent jump in used cars and trucks. Additionally, inflation remained low, recording a 12-month increase of 1.4 percent. 14
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Durable Goods Orders: Orders for long-lasting goods rose 1.9 percent in September, the fifth consecutive month of increasing orders. Orders for nondefense capital goods, a proxy for business investment, went up by 1 percent. 15
MONTHLY TIP
Check your bank account regularly for fraud? If you don't bank online - do you carefully check your monthly statements? If not, you should.