After a disastrous first quarter, the stock market rallied and had its best quarter in more than 20 years. The S&P 500 gained around 20% for the quarter, while the Dow Jones Industrial Average gained over 18%. For the year, technology stocks, led by companies such as Apple, Microsoft, and Amazon, have greatly outperformed other sectors. Much of the quarter’s rebound occurred in April and May, as states eased restrictions. In June, with coronavirus cases increasing and protests ongoing, the market gain slowed.
The rebound was helped by the massive amount of government aid and stimulus, which amounts to over $2.44 trillion. However, there seems to be a disconnect between the stock market and the overall economy. Even as businesses reopen, many businesses face increased costs, slower sales, and supply chain disruptions. Millions of jobs have been lost and the unemployment rate is over 11%. The overall impact on the economy is yet to be determined. This could lead to continued volatility in the market.
On a positive note, more is learned each day about the coronavirus as talent, time, and money are put into research, treatments, and vaccines. There are currently over 140 research teams working on developing a vaccine, with many already beginning human trials.
As always, we are here for you. Please contact your advisor with specific questions about your portfolio.
|Index||2nd Quarter 2020||Year-to-date|
|Dow Jones 30||18.51%||-8.43%|
|Bloomberg Barclays U.S. Agg Bond||2.90%||6.14%|
|MSCI EAFE Index||15.08%||-11.07%|
|MSCI EM Index||18.18%||-9.67%|
Sources: Y Charts
Figures as of June 30, 2020. Past performance cannot guarantee future results.
Let's Keep The Conversation Going
Send The Prosperity Consulting Group a note.