At a Glance: The first half of 2020 was a tale of two markets. 1Q20 culminated in the fastest peak to bear market in S&P 500 history, as volatility spiked to unprecedented levels and the coronavirus pandemic spread like wildfire. 2Q20, however, proved the best quarter in over twenty years. Aggressive stimulus & policy, vaccine/therapeutics optimism, and a fasterthan-expected bottoming/rebound in some economic data contributed to the strong performance. Growth shares outpaced Value, while Technology, Consumer Discretionary, and Energy fared best among sectors.
Despite the strong stock market performance, the state of the economy remains mixed at best. Unemployment has been in the double digits (though declining) for three straight months, and the economy shed roughly ~13 million jobs over Q2. Unemployment insurance claims have flattened out, but at a concerning level. Still, several data points indicate a more V-shaped recovery. Manufacturing and service PMI data have rebounded strongly, while the housing market has remained shockingly resilient. All eyes remain on Washington, as an anticipated fifth coronavirus stimulus bill will be key to the continued recovery, particularly given the dire employment situation.
Full list of Day Trading Alerts produced by our system in Q2 2020:More