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Perspectives Newsletter: Q3, 2020
Despite a negative return for the month of September, equities ended the quarter with the best two quarter advance since 2009. The historic rally over the previous six months can be attributed to the remarkable economic progress made in the wake of the Covid lockdown together with a lack of investment options at a time when the money supply is growing at 24% year over year. Both the economic and market rebounds owe a great deal to the unprecedented support from the Federal Reserve and Federal Government. Generating heightened volatility in the final weeks of the quarter, however, questions arose over the continuation of fiscal stimulus from the Federal government. The result was the first negative monthly return for stocks since March. September was also notable for a rotation from growth into value, led by Materials, Utilities and Industrials. Emerging market stocks were relative standouts in September, helping them to best US indices for the quarter; developed markets continued to lag. Value and emerging outperformance can be early indicators of economic expansion and increasing investor appetite for risk. Value stocks have a long way to go before establishing a trend and catching up to growth, however; they still lag significantly for the quarter and year (where they are still in fact negative).Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Parsons Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Parsons Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Parsons Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. If you are a Parsons Capital Management, Inc. client, please remember to contact Parsons Capital Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, and/or revising our previous recommendations and/or services. A copy of the Parsons Capital Management, Inc.'s current brochure discussing our advisory services and fees is available upon request.
