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Perspectives Newsletter: Q2, 2020
A painful bear market in the first quarter was met with an equally impressive rally in the second. Never before has a bear market brought on by a recession lasted only four weeks, though no bear market had ever been met with such a forceful response from policy makers around the world. If the Federal Reserve responded to the 2008 crisis with a bazooka, Chairman Powell unleashed a howitzer as the Fed grew its balance sheet to $7 trillion at the end of the quarter from just $4 trillion at the start of the year. Domestically, the one constant was the outperformance of growth compared to value. Small and mid-cap stocks outperformed their larger peers, though still lagged meaningfully for the year. In a further sign that the risk rally was truly on in the second quarter, Emerging Markets led all major groups higher in June as the global economy slowly reopened. Export and commodity-sensitive markets were especially impressive, highlighted by China with a positive year-to-date return of +1.2%—the only country in the green.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.
