June 2020

Clients & Friends,

Stocks continued to move higher in May, as the S&P 500 rallied for a second consecutive month. Continued stimulus from fiscal and monetary authorities has boosted equities, bolstering expectations for an economic rebound later this year and into early 2021. However, positive equity headlines don’t tell the full story, cautions Raymond James Chief Investment Officer Larry Adam. While he expects equities to be higher over the next 12 to 24 months, near-term risks include rising geopolitical tensions with China as well as potential setbacks related to COVID-19. It helps that mitigation measures have the number of new cases, hospitalizations and the percentage of positive tests trending in the right direction.

We thought we’d share a high-level summary for now, but you can always read the full market letter for more details on the latest economic data and U.S.-China relations.

  • Recent economic data continues to reflect the record decline we’ve seen so far in 2020, including unprecedented job losses and declines in consumer spending. A full recovery could take several quarters.
  • The rally in U.S. growth equities has been primarily driven by a handful of companies that have benefited from heavy exposure to technology and the work-from-home environment.
  • Despite some headwinds, the equity markets still made progress in May. However, long-term opportunity for an ensuing bull market remains.
 

12/31/19 Close

5/29/20 Close

Change
Year to Date

% Gain/Loss Year to Date

DJIA

28,538.44

25,383.11

-3,155.33

-11.06%

NASDAQ

8,972.61

9,489.87

+517.26

5.76%

S&P 500

3,230.78

3,044.31

-186.47

-5.77%

MSCI EAFE

2,036.96

1,725.09

-311.87

-15.31%

Russell 2000

1,668.47

1,394.04

-274.43

-16.45%

Bloomberg Barclays Aggregate Bond

2,225.00

2,346.72

+121.72

+5.47%

Performance reflects price returns as of market close on May 29, 2020.

Please know that we are thinking of you and your family and wishing you all good health. As always, feel free to reach out with any questions you may have – about the markets, your financial plan or anything else that we may be able to help with. Thank you for your trust in us.

Sincerely,

Carlie Dugan, CFP®
Managing Partner, Cornerstone Financial Partners LLC
Financial Advisor & Branch Manager, RJFS

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.

Investing involves risk, and investors may incur a profit or a loss. All expressions of opinion reflect the judgment of Raymond James and are subject to change. Economic and market conditions are subject to change. The Dow Jones Industrial Average is an unmanaged index of 30 widely held stocks. The NASDAQ Composite Index is an unmanaged index of all common stocks listed on the NASDAQ National Stock Market. The S&P 500 is an unmanaged index of 500 widely held stocks. The MSCI EAFE (Europe, Australia, Far East) index is an unmanaged index that is generally considered representative of the international stock market. The Russell 2000 is an unmanaged index of small cap securities. The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. An investment cannot be made in these indexes.

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