Good morning, and welcome to June already! Holy cow – what happened to May? At least the past few days have been absolutely gorgeous weather.
Last week, the markets were up about 3%, but this time the NASDAQ (+1.8%) lagged the Dow (+3.8%), which is unusual, compared to prior weeks, months, and even years. But then again, who is to complain when all the US markets were up? Bonds were also up about 0.6% last week, as they continue to make up for their steep losses incurred in early March. All in all, after dropping about 35% in a month at the beginning of the COVID pandemic, the US stock markets have crawled back to being down “only” about 10%. Ha – when was the last time we’ve been pleased when the markets are down 10%? Everything is relative.
We also concluded the month of May with some pretty nice gains, so investors should be pleased when they receive and open their statements. Based on client accounts we manage, diversified portfolios were up about 3% (conservative) to 5% (more aggressive), as the US markets were up roughly 5% and bonds were up roughly 1.5%. It’s nice to see back-to-back positive months after the beating we took in late February and March.