June 2020 Commentary & Performance Review
Ending a quarter of strong recovery from March-lows, the S&P 500 was up 1.8% and the S&P/TSX Composite up 2.1%, in their respective local currencies.
Ending a quarter of strong recovery from March-lows, the S&P 500 was up 1.8% and the S&P/TSX Composite up 2.1%, in their respective local currencies.
By the end of May, the majority of investors believe the worst of the COVID-19 economic shutdown is behind us. Although the stock market is forward-looking and an indicator of investor sentiment, we struggle to reconcile these returns with what we’re monitoring in the data from indicators.
After a severe shock to financial systems in March, global markets rebounded sharply in April. Although the virus continued to spread, some countries saw infection rates begin to peak and now plans are being developed to strategically re-open the global economy.
To combat the damage stemming from skyrocketing unemployment numbers and significantly reduced consumption, many central banks opted to cut interest rates, eased financial conditions to persuade banks to extend loans and reduced the interest rate expenses of businesses and consumers.
One hundred years later, we continue to see the effects of the organization founded in January 1920 which we now know as the United Nations.