Message from Jon
What We Know and What We Think
Jon McCardle, AIF & Tyler Hardt, MBA, CFA
Wednesday (July 1st) 12pm-12:45pm
*We will be closed Friday for the 4th of July
We are seeing the continued volatility running its course uninterrupted at present with the VIX back above 25 and the daily market moves ranging between + 2.44% to -3.87%. We had 8 days out of June that were over 1% moves on the S&P 500.1
Our opinion going into July is that we will likely see the positive sentiment tire as the month ages, giving way to the convergence of data we are expecting to see come month's end.
Fed Stimulus Plan, PPP Loans, Unemployment Bonus Checks, Presidential Election Campaigning, Covid-19 and Quarantine restrictions all pose headwinds.
Our own research indicates that end of July will put us at a historic edge of a retest of the lows in the S&P 500. This, coupled with many other indications, lead us to our opinion that as July ages, we may see difficulty in maintaining the positive sentiment.
Does this conclude that if markets decline, we were right and if they do not, we are wrong? Not at all. We see the above-mentioned data as points to consider along with everything else that will help us to draw conclusions that help us design, deploy, and monitor the various investments we have for clients.
Are we ready to again, tilt in favor of or against risk in the markets? Sure. At present though, we will just take a "wait and see" attitude and expect volatility to rule the day and market uncertainty to be firmly in vogue for the time being.
Be sure to register for our webinar and stay informed!
Till we speak again, have a blessed 4th of July!
Rise in Cases Inspires Turbulence
WEEKLY UPDATE - JUNE 29, 2020
The Week on Wall StreetA jump in COVID-19 cases dampened investor enthusiasm last week, sending stock prices lower on worries that rising infections could derail the economic recovery. The Dow Jones Industrial Average slumped 3.31%, while the Standard & Poor's 500 retreated 2.86%. The Nasdaq Composite Index lost 1.90% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, declined 1.28%.