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The S&P 500 Index Rose 20 Percent from the End of March
From:
Greg Womack -- Certified Financial Planner Greg Womack -- Certified Financial Planner
Oklahoma City , OK
Monday, July 06, 2020

 
 
What a quarter!
 
Who could have guessed a global pandemic would produce outsized stock market returns? Near the end of last quarter (March 23), the Standard & Poor's 500 Index was down 30.75 percent for the year, and it looked like 2020 was going to be a disappointing year for many investors.
 
Since then, the S&P 500 has gained 39 percent, reported The Economist. It rose 20 percent from March 31 to June 30. The Dow Jones Industrial Average also did well, delivering its second best quarterly showing since 1938. The Nasdaq Composite finished the quarter in positive territory.
 
A variety of factors contributed to the exceptional performance of U.S. stock markets during the quarter:
 
"On Tuesday, the Conference Board reported an 11-point rise in the June consumer confidence index, to 98.1 points. Economists' consensus estimate had been for a 90.6 reading. American households remain more optimistic about the future than their current circumstances: the present situation index component of the survey rose 15.1 points, to 86.2, while the expectations index rose 9.1 points, to 106."
 
It is possible consumer confidence in the United States will be dented by the recent upsurge in coronavirus cases. Last week, the spread of COVID-19 was gaining momentum again. Every day, from Wednesday through Saturday, more than more than 50,000 new cases were confirmed.
 
Many states and cities implemented new measures to slow the spread. One of the most important may be mask wearing. Researchers at Goldman Sachs reported:
 
"Thus, the upshot of our analysis is that a national face mask mandate could potentially substitute for renewed lockdowns that would otherwise subtract nearly 5 percent from GDP. It is important to recognize that this estimate is quite uncertain because it is based on a number of statistical relationships that are all measured with error. Despite the numerical uncertainty, however, our analysis suggests that the economic benefit from a face mask mandate and increased face mask usage could be sizable." 
 
 
For advice over the current state of our economy, call us at 877-340-1717 or email greg@womackadvisers.com
 
 
Best regards,
 
Womack Investment Advisers, Inc.

 

WOMACK INVESTMENT ADVISERS, INC.

Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK  73013

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Phone (405) 340-1717 - Toll Free (877) 340-1717
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Name: Greg Womack, CFP
Title: President
Group: Womack Investment Advisers
Dateline: Edmond, OK United States
Direct Phone: 405-340-1717
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