We noted earlier in the year that the direction of the market can largely be explained in one simple theory: Virus Fears Easing + Massive Stimulus = Rising Earnings Expectations = Rising Stock Prices. This theory continues to prove itself.
2020 is proving to be a year to forget. The 2nd Quarter saw Stay-At-Home Orders, Lockdowns, and Protests. All the while, the Coronavirus continued its global march around the world and the U.S became the new epicenter of the pandemic.
Those two factors allowed the S&P 500 to rise 8.53% during the final three months of 2019 and 28.88% for the year, making the U.S. one of the best places in the world to invest.
It has been a difficult few weeks, not just here in our country, but for the entire world. We have seen steep and significant declines in the market and are now working through the reality that the Coronavirus is here. It can be hard to find optimism when it feels as though the world is falling apart.