S&P 500 Index rose more than 7%, the best August since 1986. S&P 500 Index is extended and sits more than 15% above its 200-day moving avg. Nasdaq markets hit new all-time highs this month. Technology was once again the leading sector, rising 12% within the S&P 500. The 4th stimulus package ($1-4 trillion) stalled in Washington. U.S. passed the 6.0M case mark of COVID-19, but cases are down from July’s peak. Elections coming into focus with both RNC and DNC conventions held.

July recorded the fourth month in a row of positive equity returns around the globe. The markets pushed higher despite the news of COVID-19 cases hitting new peaks in the U.S. and the inherent slowdown in economic activity in pockets of the U.S. as a result.

The second quarter started and ended in quite a different manner with respect to the virus, the economy and the financial markets. Let’s take a look at these three important factors to get a better picture of where we are now and where we think we’ll be in the future.

The month of May brought higher returns in both equities and fixed income which may seem counterintuitive given all the bad news we witnessed on a daily basis from COVID deaths to economic destruction. The monthly returns were also much more broad-based with participation across various asset categories, sizes and regions.