What a difference a few weeks make! In our blog post mid-March, we mentioned the capital markets can move upward with the same ferocity of the initial sell off. This is exactly what we have experienced over the last two months. Investors have been asking how the S&P 500 can trade close to pre-virus outbreak levels and the economic shutdown, even though we have entered a recession. The trending data on the medical front along with a massive stimulus policy and continued fiscal easing have fueled the recent rally. The attached charts and commentary from our partners at LPL Financial illustrates the optimism. While we continue to plan for potential volatility in the coming months, the Covid-19 trends in North America, Asia and Europe have all been moving in the right direction.
Hope you and your family are enjoying the beginning of warmer days!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.