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Perspectives Newsletter: Q4, 2020
At the beginning of the year, the United States was enjoying the longest expansion on record. The economy seemed poised to continue its run with the signing of trade deals with Mexico, Canada and China. Donald Trump held comfortable leads in most polls and markets were breaking to new highs. By the end of the first quarter the Covid-19 virus had plunged the US economy into recession and ushered in the fastest bear market with the S&P 500 ultimately declining 34%. Unprecedented monetary and fiscal response saw 5 different relief packages, the largest non-war stimulus in US history, the Fed balance sheet expanding by 70% in just 2 months, record low interest rates and the fastest recovery from a bear market ever. In the final quarter of the year alone we saw the introduction of two vaccines for Covid-19, developed in one tenth of the normal time, a new President elected and a surprise election outcome in Georgia, leaving the Federal government entirely in Democrats’ control, though by the slimmest of margins. The fourth quarter also witnessed a changing of the guard in stock leadership with international, especially emerging markets, value and small cap the stars. There have been many false starts when it comes to leadership change in the past 12 years, but this has the potential to last longer.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.
