On many of our GWS weekly market update calls, we’ve discussed what may happen after states start reopening their economies. Sure enough, coronavirus cases are accelerating all across the country, so we are exploring what this may mean for the economy and client portfolios. In fact, at the time of writing (June 24), the market dropped because of the news of the spike in cases.
In our latest market update video, I shared a deeper look into what is happening and what we can expect going forward. Highlights include comments on:
- CNBC's speculation of a selling wave from investors and pension funds hoping to rebalance their portfolios, given the significant rebound in the market.
- Expectations for economic restrictions and quarantine rules based on the uptick in new cases
- The Wall Street Journal’s report that the divergence in performance of the major U.S. stock indexes this year is the widest in more than a decade. (The Nasdaq’s advantage over the Dow and S&P 500 is the biggest since 1983. The gap between the S&P 500 and the Dow is the widest since 2002 when the Dow was ahead.)
- The impact on the economy of the end of stimulus checks
- International market implications from President Trump’s temporary ban on new immigrants on some employment-based visas
- Forecasts of the deterioration of the U.S. dollar
- What the “new normal” might look like
- And more
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View this and other GWS market updates on our GWS YouTube Channel (if a recent episode isn’t posted there yet, it’s still in compliance review). And be sure to tune in to our weekly Gatewood Wealth Solutions Market Webinar to hear updates on the current state of the market and economy. As always, we welcome you to share the links to our broadcast on social media or with your friends and family. They are more than welcome to listen in and learn our perspective on the market and the economy.
If you have any questions, please contact your Lead Advisor or any other member of our team. We are here for you!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
All investing involves risk including the possible loss of principal. No strategy assures success or protects against loss.
Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.