April was a positive month for the equity markets, but what does the balance of the year look like for investors? Here’s what the experts are saying about what lies ahead…
- Although economic growth is in the midst of
a widespread collapse, we think stimulus measures are setting the stage for a bumpy recovery for the balance of the year.” Read more…
– Bob Doll, Chief Equity Strategist, Nuveen - Before the Coronavirus, the US economy was cruising for what looked like 3% annualized growth in real GDP in the first quarter. But the effects of both natural social distancing and government-mandated lockdowns crushed economic growth in March. As a result, we now think real GDP contracted at a 3.7% annual rate in Q1… But the second quarter, which we’re already in, is going to be worse… The key for investors to remember is that none of this is going to shock anyone; the markets already know it’s going to be awful. Instead, investors need to focus on how quickly we are going to recover, which will depend on finding ways to carefully ease lockdowns, the virulence of the Coronavirus in the months ahead, the timeline for developing therapies, and, ultimately, the timeline for developing a vaccine. Read more…
– Brian Wesbury, Chief Economist, First Trust - Everyone is thinking about the economic outlook right now. But unlike previous periods, I believe this one is really a matter of WHEN the economy is back on track, not if. …For those who remember the financial crisis in 2008, the economic outlook then was much more uncertain, and many predicted a decade of dramatic change and slow recovery. This time, we know the global economy and financial markets are going to be challenged for a period, but it’s possible to see the end of it as the health crisis passes and we get things back on track. Read more…
– Rob Lovelace, Vice Chairman, Capital Group Companies
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.