Skip to Content







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.

Executive Summary

  • The novel Coronavirus (COVID-19) and associated “lock-down” wreaked havoc on the global economy, labor markets, and added extreme volatility to asset class returns during the first quarter of 2020.Starting from all-time highs in market indices, economic indicators, and employment, the crisis caused these recently positive trends to reverse, though they have started to recover in recent months.
  • Large scale monetary and fiscal stimulus have been implemented in the form of lowered interest rates, increased purchasing from the Federal Reserve, and multiple rounds of stimulus, like the CARES Act, coming out of Congress, with more likely on the way. The fixed income markets have seen vast swaths of liquidity return as the Federal Reserve took unprecedented steps to purchase a multitude of assets including high yield corporate bond ETFs. Also, long duration treasuries have outperformed, due in part to the swift lowering of interest rates and the mad dash by investors seeking safe haven assets.
  • Following a market bottom on March 23rd, 2020, a strong rebound in domestic, international developed and emerging market stocks have offered solace to investors.This may appear as a “disconnect” between the underlying economy and the stock market; however, the market is forward looking, and processing the timing of when global economies will return to normal. This is certainly linked to improved treatments and the availability of a vaccine, with recent announcements creating some optimism.
  • Private Ocean’s Investment Committee successfully made changes to the alternatives allocation in the first quarter that have outperformed the prior allocation.
  • Many markets have recovered significantly, though most asset classes remain in negative territory year-to-date.

Read the full summary here.

 

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 publication 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 newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Private Ocean.  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 published 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 upon request. If you are a Private Ocean client, please remember to contact 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.