2nd quarter commentary

The stock market ended the quarter yesterday up 20%, which was the best quarterly return seen in decades.  This despite the pervasive news of COVID-19 infections, murders, riots, and violence.  How is this possible?

We started the quarter only a week removed from the low that happened on 3/23, and since the stock market is a leading indicator of where things might be headed, after hitting the low there was nowhere to go but up. While the news may show us only negatives, there are a lot of positives out there, namely 1) economies are opening back up, 2) herd immunity appears to be happening, and 3) everyday Americans and corporations are doing everything in their power to feed their families and to adapt to this difficult situation.  Regarding the latter, we are just beginning to see the results.  The American Economy is adapting and preparing for growth.  There will certainly be hiccups along the way, especially when 2nd quarter numbers start coming out, but diversification, rebalancing, and long-term thinking will continue to be the appropriate approach to investing.

I hope you and your loved ones have a safe and happy Independence Day. We are Americans and we will overcome and gain valuable wisdom from this. That is something in which I am completely confident.

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