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.
July 30, 2020 – Surevest is pleased to announce it has been named to the 2020 edition of the Financial Times 300 Top Registered Investment Advisers. The list recognizes top independent RIA firms from across the U.S.
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.
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%.
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.
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%.
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%.
It has been 66 days since stocks bottomed on March 23rd and US equities have posted positive returns. The S&P 500 is up 35.4% through Thursday’s market close, while the Dow Jones Industrial increased 36.6% and the tech heavy NASDAQ Composite is up 36.5%. However, the broader indexes are still down year-to-date, except for the NASDAQ, which is now in positive territory.
Coming into this decade there was a lot of excitement on how the world would change by the rapid technological advancements we have seen. However, nobody forecasted that the world would change right at the start of the decade and not by technology, but by a virus. There is no denying that human behavior has changed, and it is likely that things will never return exactly the way it was prior to COVID-19. It is no different for the way economic data is consumed by investors and other professionals.