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July 1, 2020

Market Commentary – July 2020

There is a constant mix of positive and negative news regarding the virus, how the U.S. has handled it, and the resulting impact on the financial markets.  Here’s what the experts are saying about what lies ahead…

  • Stock prices have roared back strongly through the second quarter, as investors grew increasingly optimistic over prospects for economic reopening and the unprecedented monetary policy support that provided a strong tailwind for equities. … We think long-term prospects for stocks remain compelling, but markets may be in for prolonged volatility, a possible setback and ongoing churning over the next few months.​ Read more…  – Bob Doll, Chief Equity Strategist, Nuveen
  • U.S. banks prove resilient… On 25 June, the Fed released the results of the Dodd-Frank Stress Test (DFAST) for the largest 33 U.S. banks. …All banks passed the DFAST and sensitivity scenarios, once again demonstrating the strength and resiliency of the U.S. bank sector. Read more…  – Bill Martin, Head of Global Fixed Income, Nuveen
  • A resurgence of new Coronavirus cases around the country has created uncertainty for investors.  Stock markets fell last week (6/22), not because of the virus, but because investors fear another round of economy-killing, government-mandated lockdowns.  We don’t expect that to happen. …We still project that the recovery process is going to take years; we don’t expect an unemployment rate at or below 4.0% until at least 2023.  However, even with a steep drop in corporate profits in the second quarter, in the current low interest rate environment our model still says stocks are cheap, suggesting we are unlikely to see the market retest its lows.    Read more…  – Brian Wesbury, Chief Economist, First Trust

As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels.  Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.

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This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. © 2016 Bernardo Wealth Planning

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