Investment Strategy Insights

We recently saw the primary driver of the U.S. economy, Personal Consumption Expenditures (PCE) plummet by the most on record. That’s what happens when 320 million people aren’t supposed to go out of their houses much and most physical stores are closed by the state and federal government.

Sentiment remains mixed as the last few weeks have brought concerns of economic damage. On the other hand, many markets have experienced a V-shaped recovery. Loan prices are now $10.04 off the lows after declining $20.46 from 2/21 to 3/23.

2020 will likely turn out to be one of the most difficult markets to navigate for investors, financial advisors, and portfolio managers. It’s in difficult times that strategies get battle tested. Most everyone looks smart when the trend is with you and the economy is strong and accelerating.

2020 will likely turn out to be one of the most difficult markets to navigate for investors, financial advisors, and portfolio managers. It’s in difficult times that strategies get battle tested. Most everyone looks smart when the trend is with you and the economy is strong and accelerating.

The first quarter was challenging for risk assets in general as investors wrestled with the economic impacts of the COVID-19 driven shutdown. The S&P 500 was down -20% in 1Q for the biggest quarterly decline since 2008.

The first quarter was challenging for risk assets in general as investors wrestled with the economic impacts of the COVID-19 driven shutdown. The S&P 500 was down -20% in 1Q for the biggest quarterly decline since 2008.

I don’t remember a time when there was more uncertainty about the economy, equity markets, debt markets, and with interest rates, volatility, and currencies. There is no comparison!