Market Flash Report | August 2020

Executive Summary

  • The Federal Reserve updated its monetary policy framework, implying that it may allow inflation to run above it’s 2% target for an indefinite period of time.
  • Economic activity improved in August, but unemployment remained relatively unchanged.
  • Prospects for additional fiscal stimulus in the US weakened as Democrats and Republicans were unable to strike a deal before recess.
  • Led by US equities, all major global equity indices posted strong, positive returns in August.
  • The S&P 500 and Nasdaq indices hit all time highs.  The Dow Jones Industrial Average has reversed most of the losses from Q1.
  • Growth stocks continue to outperform value stocks.
  • Small cap stocks outperformed Large Cap stocks.
Fixed Income
  • Global bond yields increased in August. The 10 Year US Treasury finished the month yielding 0.72%
  • High quality credit underperformed lower quality credit.
  • As the dollar weakened further, unhedged International Fixed Income outperformed its hedged counterpart.
Market Performance as of August 31, 2020

Market Performance

Sector Performance

S&P 500 as of August 31, 2020

S&P 500

Russell 2000 as of August 31, 2000

Russell 2000

MSCI EAFE as of August 31, 2020


MSCI EM as of August 31, 2020


Market Flash Report
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