While American workers continue to struggle with stay-at-home orders, April brought a relief rally for investors. Perhaps a huge sigh of relief rally, we should say. US stock returns for April were the best monthly returns since 1987, with double-digit returns across the market cap spectrum. From the depths of the market selloff into late March, stocks moved significantly higher through the end of April. In a little over a month, we have witnessed the quickest selloff in stock market history followed by one of the most remarkable rallies.
The advice to stay the course and remain long-term investors is a tough message to deliver and a tougher message to hear during these challenging times. None of us know when this healthcare crisis will end and the long-term ramifications it will have on our economy, our investments and our way of life. However, there have been numerous times in history when unpredictable events have occurred, creating significant uncertainty in our lives and the world and financial markets have recovered. We are in one of those moments in history with this pandemic and the financial stresses created by the economic shutdowns globally. While the road to recovery is challenging, we believe in the ingenuity of the American people that will permit discovery and medical solutions to this healthcare crisis.
Currently, economies across the globe are attempting to reopen, with the uncertainty of whether going back to work will lead to more COVID-19 infections, hospitalizations and yes, deaths. However, business owners and political leaders know we cannot stay in shutdown mode forever. The world needs to find a way to co-exist with this virus until a vaccine is discovered. The FDA recently approved an anti-viral drug named Remdesivir, which has demonstrated the ability to reduce the time to recovery for severely ill patients. While this is not a vaccine, it is a reminder the brightest minds in the healthcare and scientific communities are laying the groundwork for a sustainable recovery. This brought a ray of hope back to the markets. If we can discover treatments for the virus to keep us alive until a vaccine is discovered, perhaps we can go back to work and get the economy humming once again. This healthcare development, along with significant support from the Federal Reserve and fiscal relief efforts, contributed to the sharp rally in spite of the release of difficult economic data.
As we learn more about how to fight this virus and live with it until a vaccine is discovered, stocks are looking ahead toward an economy attempting to regain its footing with Americans going back to work. The uncertainty about how this evolves will lead to continued volatility in the financial markets, as we experience the ups and downs of treatment discoveries and potential setbacks along the way. However, as a resilient nation, we are determined to fight through this in order to seek a path back to a new normal way of life. Regardless of how this path moves forward, your team at 9258 Wealth Management is here to help you navigate the uncertainty. Whether it is how to invest your assets during these challenging times, understanding the waves of new legislation affecting your business, or considering new financial and tax planning opportunities created in the current environment, we are here to help.
As always, please contact us with questions anytime at 513.791.9258
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