COVID-19 transformed the world in 2020. How might this new world ultimately look? The most remarkable thing about the markets this year is that if you went to sleep in January and woke up at the end of June, you would not know, from looking at your portfolio, that we are in a health pandemic – arguably, the most significant health crisis in 100 years.

The swift bounce of the stock market during the second quarter was one of the quickest “recoveries” since 1987’s Black Monday. Once again, the market has provided an excellent example of the importance of staying invested, provided your asset allocation is correct. So, whether or not we have begun a new bull, bear, or what some call a kangaroo market is yet to be determined, and that is principally a result of three factors: 1. the virus, 2. the Federal Reserve, and 3. the recovery.

The United States is reeling. Parts of the country continue to fight off the persistent threat of COVID-19. Never before have so many Americans lost their jobs so quickly. Long simmering social issues are resurfacing across the country as many Americans struggle with the current situation and the increased fragility we are all feeling.

The market solidified the highest monthly returns seen in decades, leaving many investors confounded as they re-tool ingrained habits and experience an understandable fear of what may lie ahead. Most of the world is under some form of “lockdown” amid a pandemic unseen since the outbreak of Spanish Flu in 1918. All the while, in the face of the strongest headwind since the financial crisis, the S&P 500 rose 12.8% during the month.

The global pandemic has shocked the world and impacted every aspect of our lives, leading to sudden and far-reaching economic disruption. If you are reading this you are likely hunkered down at home, as we are, doing our best to protect ourselves and our families. You are already bombarded by news, and we do not want to add to the overload. We hope to add a more straightforward perspective on the markets, something that is often missing from the news.

Anxiety is high. Most of us are nervous – not just about the financial markets and the economy. We worry about our health and the health of our family and friends. The current situation is stressful, forcing us to take it one day at a time. As we all get through the next days, weeks, and months, we must remember that we will come out on the other side of this unprecedented time.

The coronavirus is the most severe health challenge the world has faced in recent history. Global markets continue to be roiled as the quickly developing pandemic disrupts lives and economic activity. We wrote on February 28th to expect more volatility, and that has proven to be painfully true. As the global health situation continues to evolve and financial markets respond, we want to update you on what we are doing amid the uncertainty.

After all that we’ve been through, it’s a virus that finally gets us.

That could be a prognosis for humanity in general, but it’s the story of the financial markets over the past 18 months.

You’ve heard a lot about the coronavirus lately. This latest outbreak and an unexpected flare up in the Middle East gave markets a jolt to start 2020.

It was hard to lose money in 2019. Nearly all major asset classes posted strong performance.