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2020 Year in Review

Wednesday, January 13, 2021

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2020 Highlights The Covid-19 Pandemic was the dominant force impacting the global economy in 2020, leading to the first recession since the Global Financial Crises and most severe global recession since World War II. Despite the headwinds from Pandemic-related shutdowns, unprecedented Central Bank measures and large fiscal stimulus packages both in the US and abroad helped guide equities higher for the year. Key Highlights: • Pandemic shutdowns led to record GDP contractions in the 2nd quarter of 2020 • Monetary and Fiscal stimulus combined with business reopening created record GDP growth in 3Q20 • Economic momentum receded towards year-end amid…

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Monthly Market Update for December 2020

Wednesday, January 13, 2021

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Please find the next blog in our monthly series that provides a review of the prior month’s market data, the state of the economy, and the global financial markets. Global Economy: Global equity markets had another positive month as the Pfizer and Moderna vaccines began to be administered around the globe. Markets received additional encouragement when the US Congress passed a second stimulus totaling $900 billion at the end of December. However, the latest virus surge continues to threaten economic momentum, leading to new lockdowns and weaker job growth. Optimism was further tempered as the vaccine rollout is so far…

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December 16 FOMC Summary

Thursday, December 17, 2020

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Below is a brief summary of yesterday’s FOMC statement. Rates In their final meeting of 2020, the FOMC voted to keep the Fed Funds target rate unchanged within the 0.00% to 0.25% range. This outcome was widely expected, and all committee members voted in favor of the action. The forward guidance on monetary policy indicated continued support for maintaining the current target range through 2023. Inflation Today’s statement reiterated the Committee’s commitment to the average inflation-targeting approach that was announced in August and September. The language remained unchanged, as the statement again noted the Fed will “aim to achieve inflation…

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Future Return Expectations

Thursday, December 17, 2020

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Overview The pandemic-induced downward spiral in the credit and equity markets which began in February was halted largely on the strength of historic actions by the Fed and Treasury. By Mid-March they had announced rescue programs including bond buying, interest rates at zero, loan programs, stimulus checks, and enhanced unemployment benefits. The subsequent recovery has been remarkable, with the S&P 500 returning ~60% since the market low. Fed guidance has suggested rates will remain low for the foreseeable future and further stimulus appears likely. An accommodative Fed and Treasury is encouragement for investors to be less risk averse, helping sustain…

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Monthly Market Update for November 2020

Tuesday, December 15, 2020

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Please find the next blog in our monthly series that provides a review of the prior month’s market data, the state of the economy, and the global financial markets. Global Economy: Global equity markets rallied in the month as investors cheered a barrage of positive COVID-19 vaccine news. Encouraging data around the safety and effectiveness of three different vaccines more than offset negative sentiment from the ongoing surge in the virus which continues to see record cases in both the US and abroad. Logistical challenges remain around production and distribution of the vaccines, but a firmer timeline is beginning to…

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