Last week, Nov 7-11, 2016, the stock market finally saw some positive energy after a few tough weeks. What sparked the change? Oh, this little event called the presidential election. Much to America’s surprise, Republican candidate Donald Trump was elected our 45th president over Hillary Clinton.
What did that mean for the stock market? Well the S&P 500 saw its biggest one week gain in nearly two years. The Dow Jones Industrial Average had its largest one week gain since December 2011, closing at a record high on Friday. Initially that was not the case Tuesday night during the election. As everything was unfolding, Dow futures were down nearly 800 points Tuesday night. That changed rather quickly first thing Wednesday as the Dow rebounded.
Since 1944 stocks have risen by an average of 12.2% over the two years following the election. Trends like this are meant to be broken, but I am optimistic stocks gain near this clip. Given our recent bull market run over the years, I would expect the 12.2% average to be more in the 9-10% range, which is still fantastic.
Last Week’s Stock and Bond Index Performance (Nov 7-11, 2016)
- NASDAQ 3.8% (YTD 4.6%)
- Dow Jones Industrial Average 5.4% (YTD 8.2%)
- S&P 500 Index 3.8% (YTD 5.9%)
- U.S. Aggregate Bond Index -1.8% (YTD 3.1%)
How did my retirement portfolio perform last week (Nov 7-11, 2016)?
Below is a snapshot of my three biggest retirement portfolio mutual fund movers in terms of percentage gained last week.
The below mutual funds are held within my work 401(k) plan as well as two separate Roth IRA plans. All accounts are held with Vanguard.
- Vanguard Small Cap Value Index Fund (VSIAX) 7.7%
- Vanguard Extended Market Index Fund (VEXAX) 6.7%
- Vanguard S&P 500 Index Fund (VFIAX) 3.9%
Year-to-date my retirement portfolio is up 8.1% (the S&P 500 is up 5.9% YTD). I am my own portfolio manager. I don’t have help from a Certified Financial Planner or Advisor. I was a liberal arts major and I do all my own research on investing by reading regularly. My philosophy is to use low-cost index funds and its been working for a decade.