What's in Store for the Rest of 2020?

It’s hard to believe, but we’ve reached the halfway mark in 2020. If you would’ve glanced at the stock market on January 1st and then not again until June 30th, you’d see it was down, but only a modest amount. But as we are well aware, that doesn’t even begin to tell the story of the first six months of this year. The first half of 2020 contained an all-time high for stocks, a global pandemic, the deepest recession since the 1930s and the sharpest bear market drop on record, followed by a significant market rally. With all of that packed into the first half of the year, what’s in store for the second half?

The Stock Market

• Volatility reached extreme levels earlier this year, sliding sharply in February and March, then rising steadily in April and May. While the first half looks similar to a “V,” we think the second half of the year may resemble a “W” trend. We are hopeful that a rebound in economic output and corporate earnings, along with ongoing monetary stimulus, should provide support for the market, but we expect volatility along the way, sparked by virus concerns, setbacks in reopening the economy and political uncertainties.