A Wild Ride By Theresa Gusman, Chief Investment Officer | Download the PDF Overview It’s been a wild ride – and like the terminus of a dizzying, high-speed roller coaster, we’re right back where we started. After hitting an all-time high in mid-February, plunging 34% from its peak, bouncing in late March, and advancing 20.5% in the second quarter, the S&P 500 is down less than 2% year-to-date. The Consumer Discretionary, Technology, and Energy Sectors performed best in the second quarter, and the Utilities, Consumer Staples, and Financials were the worst performers as investors’ risk appetite returned. The growth versus value chasm continued to widen in the second quarter, which is not surprising given the increase in risk appetite and sector performance in the second quarter. Strategies incorporating environmental, social, and governance (ESG) factors broadly outperformed traditional strategies and indices in the second quarter as the emphasis continued to shift to quality and sustainability. Uncertainty surrounding the COVID-19 led to a sharp rise in volatility in March, which continued through the – albeit to a lesser extent and to the upside (which always feels better). Attention remains focused on the trade-offs among rising COVID-19 cases, quarantine-fatigue, progressively easing the shutdown that crippled the global economy, and “whatever it takes” monetary and fiscal policies. The effort to weigh conflicting and potentially disastrous outcomes – both personally and collectively – sets the backdrop for continued market volatility and unpredictability in the coming month
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