Broker Check
Can You Say Unpredictable?

Can You Say Unpredictable?

| August 02, 2020

We are halfway through 2020, which is shaping up to be anything but predictable. As American businesses began to reopen, the U.S. stock market experienced a wild ride. The S&P 500 index nearly erased its -19.60% first quarter loss, posting a +20.54% return in the 2nd quarter – its best quarterly performance since Q4 1998 – with a year-to-date return of -3.08%. 

The small cap-focused Russell 2000 Index outperformed relative to the large cap S&P 500 stocks by almost 5% last quarter, recovering over 80% of its -31% first quarter loss. Internationally, foreign equity markets outperformed the U.S. in June, but widely trailed during the quarter and year-to-date. Even so, Wall Street optimism remains challenged by deteriorating trade relations with China and the accelerating pace of new U.S. COVID-19 infections in at least 37 states.
(Source of stock market data: Wall Street Journal).

Reviewed and Approved:  KM 7/14/2020 (as part of the Q2 2020 newsletter)