What is “fair value” for the stock and bond markets?

Market Wants to Know?

From a record S&P 500 high, 3393 on February 19th, to the current low, 2191.86 on March 23rd, back up to 2950 early last week, AND NOW now sitting at 2800……..

That’s enough to make your head spin!

What is “fair value” for the stock and bond markets?  At the end of the day that’s what it’s truly all about.  The recent stock rally was fueled by optimism from positive news in dealing with the virus and by talk of certain states opening up selective parts of their economies.  As usual, the market gets ahead of itself in both directions!

After the initial “giddiness” of the economy returning to normal, investors I believe will start wanting more certainty very soon.

I expect the market to continue this back and forth until we see how long it’s going to take for businesses to “get back to business.” What exactly needs to happen and how quickly is very much an unknown.  I strongly suggest remaining patient provided you have a well-diversified portfolio. Take a look at our Investment Management page for more information!

 Market Last Week

Last week the GDP report came in at a (-4.8%), unemployment claims continued to mount, however the markets finished fairly flat after a lot of movement.  For the week, the Dow was down (.22%), the S&P 500 (.19%).  The Russell 2000 was up 2.24%.

Over the pond, the developed market EAFE stock index rose 3.11% and the Emerging Market Stock Index up 4.27%.

Bond yields remained flattish as the 10 Year US Treasury yield finished last Friday @ .64%.

This week we’ll continue to hear 1st quarter earnings that will not offer any guidance and we’ll hear the jobs number on Friday.  I expect to hear an unemployment rate over 10% and most likely will get worse before it gets better.

Are You Getting Bored?

 So, how are you doing?  Are you making the most of this situation?

 I strongly suggest looking at what YOU can do going forward to enhance your life!  I truly believe this situation will end up in the rear view mirror and life will move forward.  Don’t let it move without you.  Get ahead of the curve with the major parts of your life; Your Family, Your Health and Your Money.

Have you been procrastinating on these important issues?  Well as I say to myself, my family and friends when necessary.  Time to “Man Up!”  This is the perfect time to look deep into ourselves, reflect on where you are, and what you truly want going forward.

Additionally, take a look at these 12 museums from around the world doing offering virtual tours! Something different to check out! 

 

 

 

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