We made it to June 1st in a year that many of us will never forget. What might the second half of 2020 bring?
The S&P 500 has now recorded back-to-back positive months after starting the year with three straight negative months. For the year, as of the May 29th close, the S&P 500 finds itself down 5%, international developed is down over 14% and emerging markets are down 16%. The core bond index has returned 5.5% and gold has also provided nice diversification benefits returning roughly 13%, buffering some of that downside.
As we look forward to the second half of the year, there are a number of issues that need to be monitored and all of them could dictate market behavior and direction. This includes:
How much of a rebound in economic activity is there?
What’s the unemployment picture like
How volatile does the conversation about police brutality and civil rights become
What’s the covid-19 situation like in the fall and winter
What’s the state of the U.S./China relationship?
We are now officially in election season where the presidential election and the senate races will most likely be ugly and negative
As we close out the first half of 2020 certainty wasn’t boring, and we expect no different in the second half of the year. Diversification, flexibility, and patience may be the key words to remember as we make it through 2020 and to focus on what you can control.
For a more detailed market report head on over to our Insights page. Where there are some of the key economic data points to be released this week. Also subscribe to our YouTube channel and check out some of our other social media pages.
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