Monthly Market Update:
Recap of June 2020
We have wrapped up the second quarter in what many are calling the longest year ever. 2020 has not been for the faint of heart. Entering July, the good news is we are six months through the year. The bad news is we still have 6 months of 2020 remaining. No matter what happens, we are here for you and will make the best of whatever life throws at all of us. If this is your first time tuning in, I am Eric Powell, founder of RightPlan Financial and our newest division, The Future Mill. Let’s dive into the stock market and what we are doing for your investment portfolio.
To start it off, let’s look at the numbers. The S&P 500 was up in June 1.99%, the Dow up 1.82%, Nasdaq up 6.07%, MSCI EAFE up 3.4%, MSCI Emerging Markets up 7.35%, Barclays US Aggregate Bond up .63%, Barclays US Corporate High Yield up .98%, and Barclays Municipal up .82%. Wrapping up June, the stock market had the best quarter since 1987. Kind of crazy to think just 3 months ago, we were coming off one of the fastest and worst sell offs in US stock market history. So why has the stock market rebounded? Depending on which headline you read, you will get you various reasons, but we firmly believe consumers are optimistic about what is to come for the economy. With current virus concerns, international tensions, social unrest, unemployment numbers that reached 14.7%, projected GDP numbers to decline by 50% for the second quarter and an election year, it’s dangerous to say, but we are all thinking, it has to get better from here right? The stock market seems to think so, though we are continuing to invest based on our investment strategy of asset allocation along with making sure your portfolio aligns with your risk tolerance and financial needs. The Dow Jones Industrial Average and S&P 500 still have room to grow to get back to their record high, though the Nasdaq Composite has come back and reached new highs.
There will always be ups and downs in the market, or as we call it volatility. The rest of 2020 will be no different. We will continue to manage your assets based on strategy. During this time, you may have heard of people who bought stocks and made a quick buck, though the people who lost probably won’t share their story. We are focused on long term growth and not the get rich quick.
As always, if you have questions be sure to reach out. Stay safe and thank you for watching.