MARKET UPDATE | SECOND QUARTER 2020
Markets experienced a historic recovery during the second quarter, with U.S. stocks posting their best quarterly results in two decades according to the Wall Street Journal. While the economic climate continues to improve from first quarter lows, further recovery is likely contingent upon our ability to contain COVID-19. Faced with the current public health crisis, the Fed stated it will likely keep rates at zero for the foreseeable future. During the recent period of market volatility, many active managers failed to generate alpha and underperformed passive index strategies, potentially due in part to poor market timing. We believe both recent and long-term results reinforce The Mather Group’s long-held belief that index-based investing best serves the needs of our client families, especially in times of increased uncertainty.
