2020 already feels like a decade and we are only halfway through.
Over the first six months investors experienced one of the biggest quarterly losses in stock market history, followed by one of the biggest quarterly rallies. The COVID-19 pandemic was a rogue wave and the resulting severe economic impacts have exposed deeply rooted structural and societal problems plaguing the United States.
Although financial markets have recovered due to the unprecedented monetary and fiscal policy support, a quick return to normal or a “V-shaped” economic recovery is far from certain. Recent flare-ups of COVID-19 cases in parts of the country that re-opened first are forcing governments to reverse their plans to get the virus outbreaks under control.
In addition to COVID-19, the economy and markets will also contend with the impacts of social upheaval, trade frictions, and the upcoming November elections. All of these will be major factors in how the markets perform in the second half of the year.
We think it is prudent to brace for more rough waves as well as a likely sea change ahead.
Mark J. Majka, CFA
Chief Investment Officer
Full report is available HERE
PLEASE NOTE: ABSOLUTELY NOTHING IN THIS ARTICLE SHOULD BE CONSIDERED AS INVESTMENT ADVICE OR RECOMMENDATION REGARDING THE SUITABILITY OF ANY INVESTMENT. FOR MORE INFORMATION PLEASE REFER TO DISCLOSURES.