Daily market analysis
8.12.20 | 1:04
The S&P 500 is up 1.5% at 3,383.87 in midday trading Wednesday as Technology stocks rebound from yesterday's dip. We retain our “glass half-full” outlook, bolstered by benign inflation and low interest rates, ongoing monetary and fiscal stimulus policies, medical progress on COVID-19 and favorable price trendlines.
We recommend normal strategic allocations across stocks, bonds and real estate. We also emphasize a preference for U.S. over international equities. 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
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.
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
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