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Review of the January 2020 Markets

February 20, 2020
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Hello, I hope this finds you well!

 

It's February, 2020, and here is our review of what happened in the markets in January.

 

The start of 2020 has brought increased stock market volatility. While the past four months have been uncharacteristically calm in the markets, the coronavirus appears to have changed that. That story is still developing, but analysis of prior outbreaks such as SARS, bird flu, and swine flu suggests that the global economic impact likely may be modest and short-lived, although we acknowledge the situation is unpredictable and fluid at this stage.

 

I will share that on the first day the SARS epidemic was announced, on January 31 of 2003, the S&P500 closed at 855.70. Seventeen years and six epidemics later, as of January 31, 2020 the S&P 500 closed close to four times higher at 3,225.52. I trust you know where I'm going with this.

 

The fundamentals of the U.S. economy and stock market - interest rates, inflation, wage growth, and jobs - still appear favorable overall. There are some risks such as the 2020 election, the UK officially leaving the European Union, and trade tensions with China could flare up again, but we expect the economic expansion to continue through 2020 and help power forward this nearly 11-year old bull market.

 

As always, thank you for taking the time to watch this, and if you have any questions, feel free to reach out.

 

Source: The closing level of the S&P500 on 1/31/2003 is from Standard & Poor's, as reported by Yahoo Finance

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly