We are pleased to bring you our bi-annual Economic and Market Commentary, authored by our Investment Committee, which provides a high-level summary of the current economic environment.
- The COVID-19 Pandemic brought record levels of market volatility and severe selloffs in what is now dubbed the “Corona Crash”. COVID-19 related economic shutdowns caused GDP to plummet in the second quarter of the year, which was accompanied by record levels of unemployment.
- Interest rates dropped precipitously as the Federal Reserve stepped into ease liquidity concerns and offer additional avenues to aid in credit markets. Inflation rates also stalled as the demand shock from global economic shutdowns caused earnings and growth in sectors like airlines, energy, hospitality, and travel to come to a halt.
- Despite large selloffs and uncertainty regarding the COVID-19 virus as well as the 2020 United States Presidential Election, equity markets reached all-time highs, aided in part by unprecedented fiscal and monetary stimulus globally. Fixed income markets enjoyed a positive year in the face of stymied inflation, sinking interest rates and the general risk-off attitude of investors. Both domestic and international real estate markets were shaken by the move to widespread remote work as well as harder hit sectors like restaurants, malls, and hotels.
- Going forward there are several risks that we continue to monitor including potential policy changes coming out of Congress, additional stimulus, and the continued distribution of the COVID-19 vaccine.
Read the full summary here.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Private Ocean, LLC[“Private Ocean”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Private Ocean. Please remember that if you are a Private Ocean client, it remains your responsibility to advise Private Ocean, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Private Ocean is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Private Ocean’s current written disclosure Brochure discussing our advisory services and fees is available for review upon requestor at www.privateocean.com. Please Note: Private Ocean does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Private Ocean’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Also Note: IF you are a Private Ocean client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.