Wow, what a spectacular weekend for weather in the Northeast! Not so spectacular for the markets, though. We started the week off well, but Thursday’s rout of about 7% caused the markets to finish the week down 2.3% for the NASDAQ and 5.5% for the Dow. This came following the Fed Chairman’s remarks on Wednesday that the economy faces a long road to recovery and unemployment numbers would remain under pressure for quite some time. I heard economists predict that the unemployment rate would still be at 9.3% at the end of 2020. Further, the markets were hit hard because there has been a resurgence in COVID-19 cases, and additional COVID data revealed over the weekend has the US stock markets off to a bad start today already.
So, how about some silver lining? Despite the beating we took last week, all of our actively managed portfolios are still up for the month of June. Plus, despite the 34% stock market plunge and 13% diversified bond portfolio plunge (both of which have recovered somewhat) from the market peak as a result of COVID-19, our actively managed portfolios have ranged from down <1% (conservative) to down <3% (aggressive) for the year. In other words, we’re not licking our wounds as bad as one might think, and this is also on the heels of extraordinary gains in both stocks and bonds in 2019. Of course, that’s looking in the rear view mirror, and not looking ahead. We may have a bit of a rough road ahead.