dwilson's blog

Financial Market Update: June 2020

Volatility is back!  Last week the stock market suffered one of its worst declines in months leaving many investors questioning if the rally from the March lows has come to an end.  Prior to this sharp drop stocks had been consistently marching higher and higher leaving many investors perplexed as to why.  After all, consumer confidence remains low, corporate earnings are projected to collapse 30% or more in 2020, and unemployment is over 13%.  Couple this with an escalation of geopolitical pressures abroad and racial tensions here at home and you seemingly have a perfect storm for financial market Armageddon.

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Financial Market Update: May 2020

Last month stocks delivered their best monthly return since 1987 with the S&P 500 rising 13%.  Stocks have built on these gains marginally in May, pushing the index up 34% from its March low and down less than 9% for the year.  Keep in mind this comes on the heels of a 31.5% return in 2019. 

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Characteristics of Bear Markets

It’s been 10 years since the last bear market, commonly defined as a sustained decline of 20 percent or more. We experienced a significant correction late last year, with stock dropping almost, but not quite 20 percent. Equity prices have since staged an impressive recovery so far this year. While we don’t know if the next bear market is right around the corner or a long time away, to successfully navigate the next one and keep their investment strategy intact, investors need to know three things...

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