Wealth Management | Market Flash Report - July 2020
Global equities had another strong month in July, the fourth consecutive month of gains.
- Emerging market equities posted the best performance in July, outperforming US equities by more than 3%.
- International equities also did well, but trailed US and Emerging Market equities by a fairly wide margin.
“Growth” stocks outperformed their “value” counterparts once again.
- Despite short periods where value has picked up some momentum, growth stocks in all major equity asset classes have trounced value stocks in 2020.
- Value stocks in certain industries have struggled to keep up with the broader market (financials, energy, industrials, etc).
Fixed income markets also posted strong performance.
- Broad based fixed income indices were up about 1.5% for the month.
- Riskier credit did particularly well during the month, with asset classes such as High Yield up more than 4.5%.
- With Fed policy rates likely to be anchored around 0% for an extended period, investor demand for yield has elevated market prices for riskier fixed income assets.
Sector Performance – International Equity (MSCI EAFE)
Sector Performance – US Small Cap (Russell 2000)
Sector Performance – US Large Cap (S&P 500)
Sector Performance – Emerging Markets (MSCI EM)