Thoughts from our Chief Investment Officer
“These are difficult times, but throughout this period we have found that clients who are grounded in a financial plan – tailored to their unique circumstances – can withstand market volatility within a constant news cycle.”
- Eric Freedman, Chief Investment Officer, U.S. Bank Wealth Management
S&P 500 annual returns: 1990-2020
Looking at the history of the market’s expansions and contractions can help you gain a fresh perspective on the advantages of investing for the long term.
Despite sizable declines in many years, 21 out of the last 30 years ended with positive returns.
Daily market analysis
The S&P 500 closed up today 0.45% at 3,130.01. Earnings reporting unofficially begins during the second week of July. Expectations are low, with year-over-year revenue and earnings projected to decline approximately 11% and 43%, respectively, according to FactSet.
We recommend normal strategic allocations across stocks, bonds and real estate. We also emphasize important biases with those categories, including a preference for U.S. over international equities and large and mid-capitalization stocks over small. Technology and Healthcare are among our preferred longer-term sectors. Diversified portfolios should maintain bond exposure near long-term strategic targets with a tilt toward higher-quality credits. Investment-grade corporate and municipal bond yields compared to Treasuries remain elevated, and appear attractive.
Latest market updates
News that daily virus infections reached a record high in the U.S. pushed stock prices to near monthly lows for June. Read the latest insights from our investment strategists.
Fed shares economic forecast
The Federal Reserve has taken more sweeping actions this year than ever before. As their June meeting concludes this week, our investment strategists break down the first economic forecast from the Fed since the COVID-19 outbreak.
While we remain positive and optimistic about the investment landscape, we encourage clients to stay centered on their financial plan.
Stocks have rallied this week on optimism about the economy reopening and people getting back to work — despite deep unemployment and falling productivity numbers across the U.S. economy due to the impact of COVID-19.
Congress has authorized additional funding to the Small Business Association for the Paycheck Protection Program (PPP), which is part of the CARES Act, is a federal loan program that can help eligible small and medium-sized businesses impacted by the coronavirus.
The Coronavirus Aid, Relief and Economic Security (CARES) Act provides a variety of ways to help your financial position in a period where the economy is dealing with a wide range of unprecedented challenges.
7.1.20 | Yahoo! Finance | Video
Senior Investment Director on the "disconnect" between economic data and capital markets
William Northey, U.S. Bank Wealth Management's Senior Investment Director, joins The Final Round to discuss the impact of COVID-19 on markets and what this means for the shape of recovery.
6.28.20 | Reuters | Article
Wall Street leads stocks' rebound, sterling dips
Bill Merz, head of fixed income research at U.S. Bank Wealth Management in Minneapolis, said he expected small changes for long-term yields, noting that Treasuries may be “one of the least-interesting markets for the rest of the year” due to the Fed’s influence on the short end of the curve.
6.26.20 | MarketBeat | Article
Stocks sink as virus cases jump, forcing states to backtrack
“That certainly calls into question how vigorous this recovery will be,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.
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