Monthly Market Update
Submitted by TLWM Financial on June 1st, 2020The stock market rallied for a second straight month as the S&P 500 was up about 5% for May as many states began the process of “re-opening” the economy. (YCharts) The rally in stocks came as investors tried to balance both good and bad news. Good news came in the form of potential progress on a COVID-19 vaccine and therapies to treat the virus, monetary and fiscal stimulus around the globe, and anticipation of increased economic activity. The bad news came in the form of very challenging economic data which included ongoing jobless claims, a contracting economy, and an official unemployment rate of 14.7%. (YCharts)
We continue to be positioned cautiously within portfolios as we weigh the impact of both good and bad news. Our economic dashboard continues to flash warning signs which we believe are reflective of an ongoing recessionary environment justifying reduced risk for the time being. We continue to watch closely the following risks which we believe have the potential to lead to future volatility: