Economic and Market Review
Q3 in Retrospect
Riding on the backs of extraordinary U.S. fiscal and monetary policy support, domestic stocks overall continued their sharp recovery from the March lows to post positive gains for another quarter. The S&P 500 Index dashed towards a new all-time high of 3,588 in early September before finishing the third quarter up 8.9%. Sprinting alongside the rise in U.S. large cap equity indices has been the sharp snap-back in overall economic activity, which is providing encouraging fundamental support for these lofty equity levels early in the recovery. The pace of rehiring over the past five months has exceeded expectations, and 3rd quarter U.S. GDP growth could be up well over 20%. These are impressive early gains so far for both stocks and the economy. But not so fast – we still have a long stretch to go before we finish this race towards full recovery, and there are some hurdles we have to get over on the track ahead.
Post 1: Q3 in Retrospect
Riding on the backs of extraordinary U.S. fiscal and monetary policy support, domestic stocks overall continued their sharp recovery from the March lows to post positive gains for another quarter.
Post 2: Uneven Recovery Creates Winners and Losers
Taking a closer look at the rise in the economy and stock market, investors will see how uneven this recovery has been.
Post 3: Large Cap Growth Fueled by Accelerated Demand for Tech Services and Race for a Vaccine
The outperformance of large cap growth stocks has actually been going on for the past decade, which makes them hard to dismount since we are likely to eventually return to the slow 2-2.5% pre-pandemic economic growth rate of the past 10 years.
Post 4: Upcoming Election Fuels Market Volatility
Is a leadership change on the horizon? Ask the market. Past results show it’s a good tip sheet.