Halftime! A Wild Start to 2020
The coronavirus dominated the headlines. It disrupted our lives, the economy and the stock market. Today we’ll take a look back at what happened in the first quarter. One thing is certain, It was a wild start to 2020.
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Halftime! A Wild Start to 2020
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Episode outline:
Stocks
- Both the first and second quarters were extreme
- The first quarter: Bad
- The second quarter: Good, but not good enough
- Stocks are still down year to date
Bonds
- It’s where investors go when stocks struggle
- Remember, when interest rates and yields go down, bond prices go up.
- Long term bonds have bigger moves—much bigger
Gold
- Gold is the “fear asset”
- It shined in the first half
Pictures!
Stocks
US Stocks and International Stocks featured some extreme moves in the first half of 2020.
Bonds
Investors perceive bonds as a “safe haven” when there is trouble in the stock market. Interest rates and yields dropped significantly in the first half, which means bond prices go up. It was a good period for the bond market.
Gold
Many people consider gold a fear asset. As a result, demand for the metal helped push prices higher in the first half.
Comparing Year to Date Results
Bonds and Gold all generated positive results in the first half of 2020. Unfortunately, stocks did not.
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About the Author
Neal Watson is a Certified Financial Planner™ Professional and a Financial Advisor with Fleming Watson Financial Advisors. He specializes in helping hard working, middle class families plan for retirement.