Market Thoughts for September 2020
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for August. It was a very good month for the markets. The Nasdaq and S&P 500 reached new highs, and investors continued to move back into the markets. We also saw infection numbers decline, and the economic recovery started to regain strength. Consumer confidence looks to have bottomed, and wage growth has ticked up again, supporting spending growth. We’re in a much better place than we were a month ago, but are there risks ahead? Stay tuned to find out. Follow Brad at blog.commonwealth.com/independent-market-observer.
CEF Yields and More
by Investius News,
Closed-end funds are known for leveraged income generation, but yields can come from a range of sources, strategies and products. John Cole Scott, founder of the Active Investment Company Alliance and chief investment officer of CEF Advisors, offers his perspective on the current CEF landscape and challenges presented by the coronavirus, not to mention the presidential election and recession recovery. Scott also shares his excitement about the AICA online CEF conference on Aug. 13, featuring the “best and brightest” minds in the CEF industry.
Market Thoughts for August 2020
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for July. Overall, it was a good month for the markets. As July began, we saw strong job gains, declining layoff numbers, and rising consumer confidence and spending. Markets rose on this good news. But then infection counts went up, leading to state-level closures. This shift hit hiring and confidence, slowing the recovery. As a result, several market indices declined from their midmonth levels. Should we expect more volatility ahead? Stay tuned to find out. Follow Brad at blog.commonwealth.com/independent-market-observer.
Muni Closed-End Funds Update With Dave Lamb
by Investius News,
Municipal Bond Closed-end Funds, like most investments, have felt the impact of the coronavirus-stricken economy. But Dave Lamb of Nuveen says Muni CEFs have rebounded well, especially those with higher quality credits. Despite potential concern of a recession-driven shortfall of taxes supporting munis, Lamb is optimistic about the future. He says it’s an “opportune time to invest in closed-end funds.” He expects discounts to continue to narrow and notes the low cost of leverage has helped lead many funds to increase distributions.
Tales from the Front: BDC Exposure
by Investius News,
In recent years Business Development Companies may have caught your eye and your client’s attention as well. The growing BDC market offers broad access to potentially high-yielding private equity, if an alternative PE investment fits your portfolio needs.
2020 Midyear Outlook
Brad McMillan, Commonwealth’s CIO, gives his 2020 midyear outlook. The rest of 2020 will be about the virus. We’re seeing localized outbreaks, but the necessary countermeasures are in place. So, we can reasonably expect the virus to remain under control. Despite the medical setbacks, millions of jobs have returned, along with consumer confidence and spending. The recovery remains on track and is likely to continue. And that's exactly what the markets are expecting. But will there be volatility ahead? Watch this video to find out. Follow Brad at blog.commonwealth.com/independent-market-observer.
Market Thoughts for July 2020
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for June. It was a great month for the markets. In part, markets were reacting to progress on the viral front, with drops in the daily case growth rate and increased testing. They were also responding to the continued economic recovery. Millions of jobs returned, and consumer confidence bounced back. Of course, there were setbacks, with some states seeing an uptick in virus cases. Will the recovery remain on track despite the risks? Stay tuned to find out. Follow Brad at blog.commonwealth.com/independent-market-observer.
Market Thoughts for June 2020
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for May. Last month, we saw real progress in the coronavirus, which allowed the economy to begin reopening. Hundreds of thousands returned to work, people began to shop again, and confidence started to stabilize. In turn, U.S. markets rose to just above their long-term trend line and are now fully expecting a V-shaped recovery. But how will markets react if a second wave of infections occurs or spending doesn’t return to normal levels? Stay tuned to find out. Follow Brad at blog.commonwealth.com/independent-market-observer.
Market Thoughts for May 2020
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for April. In the U.S., markets were up by double digits. Still, the economic damage continued. Millions of jobs were lost, and businesses shut down. But we did see progress. The spread of the virus slowed, and testing increased. Plus, federal stimulus provided funds to individuals and businesses. The markets noted these improvements, bouncing back in April. In fact, the markets expect a full recovery in about a year. Are they right? Stay tuned to find out. Follow Brad at blog.commonwealth.com/
Market Thoughts for April 2020
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for March. It was a terrible month for the financial markets, with the coronavirus driving the volatility. In the U.S., markets were down by double digits. Further, the economic damage began to emerge, with three million jobs lost in a week. In response, the government quickly stepped in with a $2 trillion stimulus package. The markets took comfort in these measures, showing a slight bounce at month-end. What should we expect in April? Stay tuned to find out. Follow Brad at blog.commonwealth.com/independent-market-observer.