Last week proved to be much quieter than the week prior. Markets closed slightly higher for the week as Friday’s selloff erased most, but not all, of the week’s gains. Once again market volatility centered around COVID-19, specifically Apple’s surprise announcement on Friday that they were reclosing some stores in Florida, the Carolinas, and Arizona due to the uptick in virus cases. Several other states have reported similarly high virus numbers which has also influenced market returns.
We will likely continue to see a ‘COVID Reactionary Market’ for the near-term as news on the virus drives market returns: positive news will spur gains while negative news will drive losses. However, it does seem unlikely that we will either breach new highs or lows until a vaccine has been successfully developed. Rather we will continue to see a choppy market that trades within our current range of returns.
Much debate centers around the pace of the economic recovery. We are encouraged by the initial numbers reported by businesses that are reopening. If those reopenings continue we will likely continue to see an improving economy. However, if they stall, or reclose due to the recent surge in new cases, we may significantly delay the recovery.
We continually review and evaluate your investment portfolios and will reach out if evolving conditions merit changes.
As always, we are here to answer your question and address your concerns. Please don’t hesitate to reach out.