(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents – 6/11/20
Back Home

Market Currents – 6/11/20

byAscentadmin inChris Lai posted onJune 9, 2020
0
0
Market Currents – 6/11/20

Stocks’ Recovery Continues
Equities continued their move higher in May, building on the positive momentum seen the month prior. Aggressive policy action from the Federal Reserve has helped to ease prior strains in credit markets, and fiscal support from Congress has lent some cushion against the downturn. Promising data on COVID-19 vaccines and therapeutics, as well as the reopening of the economy, are bolstering hopes for an economic rebound later this year.

Broadening Rally
From the March lows, the market’s recovery was driven primarily by a relative handful of U.S. large cap growth equities. More recently, we are seeing a broadening of the rally – a positive development – as investors return to previously underperforming areas like mid- and small-caps, and to downtrodden cyclical sectors such as energy and financials.

Economic Data Playing Catch-Up
Recent reports continue to reflect the sharp economic impact of the COVID-19 crisis, but the data seem to be showing signs of improvement (or are simply “less bad” than expected). The US labor market rebounded unexpectedly in May, surprising most economists. Aided by stimulus checks and enhanced unemployment benefits, personal income has increased, leading to a 33% surge in US savings rate. As states move to reopen, we expect to see some level of pent-up consumer demand boosting the economy. The path and pace of the recovery remains highly uncertain, but recent metrics are suggesting a smoother course than initially imagined.

Fiscal and Monetary Actions 
Policymakers around the globe have responded quickly with extraordinary monetary and fiscal actions to bolster industries, businesses, and individuals, softening the economic impact of COVID-19. The US Congress passed legislation earmarking over $3.6 trillion dollars in financial assistance and economic relief programs. The Federal Reserve, too, responded aggressively through emergency rate cuts and substantial lending programs to provide liquidity and alleviate investor tensions.

Civil Unrest
Significant protests—both peaceful and violent—have erupted across the US and abroad in the wake of the police-involved death of George Floyd. Despite the societal tensions on display, investment markets have remained largely unaffected by the unrest, and we expect that to remain the case.

Outlook for 2020
Surging liquidity and hopeful virus treatment/vaccine news have been significant tailwinds behind stocks. Encouragingly, the COVID-19 curve appears to have flattened in many parts of the world, although the virus is by no means vanquished. We anticipate a rebound in economic growth in the second half of the year as economies continue to reopen, although we are maintaining a watchful eye over the potential for a “second wave” of infections. We are also continuing our assessment of the long-term impact of the pandemic on industries and sectors.

Christopher Lai
Senior Portfolio Manager
06/09/2020

Share:

Previous

The Great Reopening

Next

Market Currents- 7/13/2020

Related Posts

Market Currents- 12/07/2016
December 7, 2016
Market Currents- 12/07/2016
No Comments
The Fallout of FTX in the Cryptocurrency Universe
November 11, 2022
The Fallout of FTX in the Cryptocurrency Universe
No Comments
Market Currents- 03/09/2017
March 9, 2017
Market Currents- 03/09/2017
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.