April 2020 Commentary
Although COVID-19 cases continued to rise rapidly around the world, the market’s focus seemed to shift to slowing rates of transmission plans for the f gradual re-openings of major cities around the world, promising drug tests and massive stimulus bills related to the pandemic crisis.
We saw significant monetary and fiscal stimulus programs by central banks and governments around the world, which injected trillions of dollars into their economies to ease the economic pain felt by the shutdown. Central banks took additional measures to ensure that there was adequate liquidity in fixed income markets, through massive purchase programs and expanding existing lines of credit to corporations.
Although economic data and corporate earnings were overwhelmingly negative, equity markets shook that news off and recovered over half of their Coronavirus-related declines; the S&P 500 was up roughly 13% in April.
However, despite the relief rally many variables remain uncertain including the treatment of the virus, the ultimate human toll and suffering, continued pressure on earnings and consumer sentiment and overall aggregate economic impact.
As such, we expect continued volatility in the markets and continue to adhere to the philosophy of investing with a long-term time horizon.