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Market Recap (May 4 2020)

May 04, 2020
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Believe it or not, April was the single best month for the markets over the past 30+ years. Since the low of March 23rd, all major indices have experienced a significant increase. It has been a welcome respite from the previous month’s selloff.
 
So, does this mean we are out of the woods? We don’t think so. While we are encouraged by the market rally, we also believe there are simply too many unknowns that remain. States are beginning to reopen their economies, but we do not have a nationwide coordinated effort or time table. Unemployment numbers continue to grow and although some promising treatments are emerging, COVID-19 remains a great health threat.
 
Many market experts agree that we may very well see another downturn in the market over the coming months. This is called “testing the bottom”, where the market drops back down to a range of its previous low – in this case, our March 23rd close. Testing the bottom is not a sure thing, but we should be prepared for continued volatility in the near term.
 
So, what should you do? In most cases, remaining true to your investment strategy is the best way to deal with market unpredictability. While many questions remain in the short term, we continue to be very optimistic for the long term. 
  
As always, if you have any questions or would like additional information, please don’t hesitate to reach out.