Well that was an interesting quarter. The second quarter of 2020 brought us the fastest selloff into a bear market in history, which subsequently turned out to be one of the shortest in history. Equities around the world continue to whipsaw investors amid COVID-19 and the resulting fiscal and monetary stimulus packages from governments around the world. In short, the markets seem to be at odds with the economy.
Interest rates have fallen in lockstep and show few signs of rising any time soon. This makes for great refinancing opportunities for borrowers, but poor bond yields for long term investors. These are interesting and precarious times.
Here is this quarter’s market update.