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Monthly Educational Video Script
This is Dean Fox from Kalejta Financial Management with an educational economic update for June 2020.
In this month’s podcast, we’ll discuss some recent headlines that influenced the financial markets in May. I will also provide some perspective on what these developments may mean in the months ahead.
Please stay tuned at the end of this podcast for a required disclosure statement.
Stocks rallied in May, sparked by a supportive Federal Reserve, stories of reopening, and progress on finding a COVID-19 vaccine.
The Dow Industrials rose 4.3 percent, while the S&P 500 gained 4.5 percent. The NASDAQ led, picking up nearly 7 percent.[i]
During the month, investors chose to focus on future economic hopes rather than current woes.
Stocks rallied on news that the Federal Reserve is committed to doing whatever it takes to support the recovery.
Stocks weakened late in the month in response to tensions between the U.S. and China, but comments by President Trump on the last day of trading eased concerns.
In some sense, a sustained and complete economic recovery may rest on developing a vaccine for COVID-19.
There are over a hundred vaccine candidates, with 10 currently in clinical trials.[ii]
Over the next couple of months, results from several of these trials are expected to be released.
If positive, the vaccine trials could provide the markets with a sense of optimism. If they prove disappointing, investors may dread the prospect of a prolonged economic recovery. Either way, expect investors to be attentive to developments.
That’s it for this month’s economic update.
Once again, this is Dean Fox with Kalejta Financial Management signing off for the month of June 2020.
Please remember that nothing we talk about here is a recommendation. If you would like to discuss your personal financial situation, please give us a call at 610-831-2195. We’d be happy to talk to you.
While we believe the information in this report is reliable, we cannot guarantee its accuracy. Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision.
Investment adviser representative and registered representative of, and securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC). Kalejta Financial Management is not a subsidiary of nor controlled by Voya Financial Advisors.
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining markets. The indices mentioned are unmanaged and cannot be invested into directly. Past performance does not guarantee future results.
[i] The Wall Street Journal, May 31, 2020. The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The S&P 500 Composite index is an unmanaged index that is considered representative of the overall U.S. stock market. The Nasdaq Composite index is an unmanaged index that is considered representative of small-capitalization companies. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.
[ii] Who.int, May 27, 2020
June 2020 Podcast