Markets Climb as Virus Containment Continues
Quarterly Review, October 7, 2020
By Mitchell Anthony
The US equity markets had a terrific quarter despite the fact that little progress was achieved in containing the coronavirus. US Equities lead all asset classes in the 3rd quarter of 2020 with the S&P 500 advancing 9%, MACM’s Dynamic Growth Portfolio Advancing 12%, and MACM’s Diversified Equity portfolio advancing 13.7%. Foreign Equities lagged badly in the quarter likely due to the fact that the European economy has very little share of the globe’s big cap tech industry. Gold advanced 5.8% as the Fed adopted a posture of more accommodation and more patience with inflation. Real estate failed to follow through with further gains in the third quarter after significant gains in the second quarter. Generally most REITs were flat or up 1-2% in Q3. High quality fixed income investments were mostly flat for the quarter as prices began the quarter at historical highs with only a few rational reasons why investors might expect yields to decline further. Distressed debt performed a bit better as credit quality improved during the quarter given the feds intervention and Congress’s willingness to support distressed areas of the economy.Read more
Tech Wins No Matter Who Wins Election?
By Mitchell Anthony
September 30, 2020
With the election around the corner investors are getting nervous about the impact a Biden victory might have on the equity market and the leadership in the equity market. Thus far, since Washington, the Congress, and the central bank declared war on the pandemic, the equity market has roared and the leadership has been centered in technology stocks. The reason is simple - These companies are leveraging the current environment and have a tailwind at their back. Cyclical stocks like airlines, hotels, and restaurants have begun to recover but the outlook for them is still very uncertain and highly dependent upon the termination of the virus. This group may not win no matter who wins the election or conversely could win with either candidate based upon the virus outcome. However technology is likely to win no matter what the outcome of the virus is and no matter what the outcome of the election might be.Read more
