• In spite of weak macroeconomic data and fears of a resurgence of COVID-19, U.S. equities continued their rally in July, aided by Fed stimulus and strong earnings results  The S&P 500^® gained by 6%, while the S&P MidCap 400^® and the S&P SmallCap 600^® gained by 5% and 4%, respectively. The total return for the S&P 500 is now modestly positive year to date. Volatility declined, with the VIX^® closing the month at 24.46.
• International markets also gained, with especially strong performance in the emerging markets. The S&P Developed Ex-U.S. BMI and S&P Emerging BMI were up 3% and 8%, respectively.
• With the exception of Enhanced Value, all factor indices posted gains, with Momentum and Low Volatility in the lead. Consumer Discretionary and Utilities were the top performing sectors.

• After March’s carnage, U.S. equities roared back in April, driven by fiscal stimulus and the apparent slowing of the spread of COVID-19. The S&P 500^® gained by 13%, the best monthly performance since January 1987. In a reversal from the recent past, mid-caps performed even better, with the S&P MidCap 400^® up 14%. While still relatively high, volatility calmed, with the VIX^® closing the month at 34.15.
• International markets also recovered, with the S&P Developed Ex-U.S. BMI and S&P Emerging BMI up 8% and 10%, respectively.
• All factors and sectors posted gains, with High Beta and Growth in the lead, followed by Equal Weight, thanks to the recovery of smaller-caps.  After suffering this year and in spite of the volatility of oil prices,  Energy made a comeback as the top performing sector.

I’d like to share today’s insights from Schwab Chief Investment Strategist Liz Ann Sonders in response to the economic implications of COVID-19 and the recent crash in oil prices: Manic Monday (Tuesday, Wednesday, Thursday, Friday).

I hope these insights help you navigate the current market volatility. Please reach out with questions or for more information.

• U.S. equities started the year strongly, but gains were erased towards the end of the month as a result of coronavirus fears. The S&P 500^® was flat in January, while smaller-caps lagged, with the S&P MidCap 400^® and the S&P SmallCap 600^® down 3% and 4%, respectively.
• International markets declined, with the S&P Developed Ex-U.S BMI and S&P Emerging BMI down 2% and 4%, respectively.
• Low Volatility was the top performing factor; not unrelatedly, Utilities was the top performing sector with Real Estate close behind. Similarly, Momentum and Growth were the next best factor index performers, while Info Tech and Communication Services were the second and fourth best performing sectors. Meanwhile, in a reversal from last year’s outperformance, Value lagged Growth.

• In sharp contrast to last year, U.S. equities triumphed in 2019, with the S&P 500^® up 31%, its biggest annual gain since 2013.  Easing trade tensions and Fed accommodation renewed optimism about the economic outlook. Mega-caps dominated as gains for the S&P MidCap 400^® and the S&P SmallCap 600^®, 26% and 23% respectively, lagged the S&P 500.
• International markets also gained, with the S&P Developed Ex-U.S BMI up 23% and the S&P Emerging BMI up 20%.
• High Beta was the best performing factor, followed by Quality; not unrelatedly, Information Technology was the best performing sector, up a remarkable 50%.  Meanwhile, Value outperformed Growth for the first time in three years.

• Amid optimism that U.S.-China trade issues will be resolved amicably, U.S. equities showed strength in November. The S&P 500^® was up 4%, its biggest monthly gain since June, while the S&P SmallCap 600^® and the S&P MidCap 400^® gained 3%.
• International markets also gained, with the S&P Developed Ex-U.S BMI up 1%.
• The resurgence in Value continued, as Enhanced Value was the best performing factor. Year-to-date, Quality was the top performing factor index, up an impressive 29%; not unrelatedly, Information Technology was the best performing sector.
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