Keep connected
Our investment management team is made up of engaged thought leaders. Get their latest commentary and stay informed of their frequent media interviews, all delivered to your inbox.
Despite worsening news on the pandemic front during July and some backing off of re-opening plans for many parts of the global economy, ‘big tech’ in the U.S. lead a resurgence in stocks, erasing losses on the S&P500 for the year and pushing the Nasdaq Index into record territory. North of the border, the fuse was lit for the stock averages by the 18% monthly gain in the Gold sub-sector as low interest rates and currency weakness provided fertile ground for the precious metals complex. Stocks, bonds and commodities are heading for their strongest simultaneous four-month rise on record, highlighting the breadth of the market recovery during the 2020 economic slowdown. Bonds also continued to generate some gains as interest rates drifted slightly lower and central banks indicated that they “weren’t even thinking about when they would start thinking about raising interest rates!” Adding to the ebullient atmosphere in financial markets, commodity prices tacked on a 4% gain for the month, lead by a 33% surge in silver prices and a 34% gain in lumber. However, weaker oil and agricultural prices have put a damper on the commodity group overall in 2020 and the CRB Commodity Index remains down over 22% year-to-date despite the gains in precious metals, copper, uranium and lumber. Bottom line though, in terms of the strength of this recovery off the March lows, this is the first time that stocks, commodities and bonds have all risen this much in a four-month period since 1976. (more…)