Wealth and Wisdom

Market Update – August 28, 2020

Inflation is a topic that is starting to get more attention on Wall Street. The Federal Reserve and Congress took strong measures to combat the rapid decrease in economic output caused by COVID-19. The Fed implemented many programs available to struggling businesses, while the government passed a massive stimulus package to help many individual Americans. This coordinated approach is expected to prop the economy during these difficult times and help speed the recovery. However, investors are now asking if these actions may have consequences down the line through higher inflation levels.

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Market Update – August 21, 2020

The S&P 500 hit another milestone this week closing higher than the all-time high set February 19, 2020. At that time, nobody knew that the index would drop 33.9% in just a few short weeks, setting a historical record for the fastest decrease of its kind that ended the longest bull market in history. Fast forward five months, and here we are setting yet another record, but this time for the shortest bear market in history.

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Market Update – August 07, 2020

With less than 90 days until the 2020 U.S. presidential election, it is natural to inquire how the stock market might react to a change in administration. The U.S. stock market benefited from the Tax Cuts and Jobs Act of 2017 when the highest corporate tax rate decreased from 35% to 21%. Investors are now asking if Joe Biden becomes the next president and follows through with his plan to increase corporate taxes, will the market give up all the gains from the tax cuts? 

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Approaching Our 6-Month Partnership with CI Financial

We are approaching our 6-month anniversary of our partnership with CI Financial. While the investment landscape is much different than we expected, we are certainly thankful to have significantly improved our financial strength and research, at a time many companies have faced unprecedented challenges.

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Market Update – July 24, 2020

The much anticipated second quarter earnings season is here, and Wall Street Analysts are watching closely to see how companies are weathering the COVID-19 environment. It is no surprise, that on average, corporate profits are expected to decrease significantly compared to last year and come in much lower than the first quarter.

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Summer 2020 Quarterly Commentary

The second quarter witnessed one of the biggest disparities between market return and economic data. Some investors were left puzzled why the markets did so well last quarter in a time when bad economic data was being released. Last quarter, the S&P 500 posted a total return of 19.95%, while the Dow Jones Industrial gained 17.77% and the tech heavy NASDAQ Composite increased an impressive 30.63%. 

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Market Update – June 26, 2020

This year is turning out to be very different than investors had anticipated. At the start of 2020 there was not a single market strategist who said a global virus would act as a headwind to the economy and the markets, but here we are today dealing with what is certainly a black swan event. In normal presidential election years, the media covers the latest election news daily, but this year has been different. With so much going on, the election has taken a backseat.

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Market Update – June 12, 2020

Thursday’s market selloff served as a reality check to some investors who had forgotten markets do not go straight up. The media pointed to the new spikes in Coronavirus cases as the reason; although certainly true, the markets were looking for a reason to put a pause to the recent rally. The selloff caused the Dow Jones Industrial Average to drop 6.89%, while the S&P 500 decreased by 5.89% and the NASDAQ Composite Index was down 5.26%.

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Market Update – June 05, 2020

The US equity markets continued their positive trend this week with the S&P 500 posting a gain of 2.23% for the week through Thursday’s market close. The Financial Sector led the way up 7.98% followed by energy stocks, displaying a gain of 7.40%. Healthcare was the worst performing sector during this period, down 1.40%.

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