Markets wrapped up the year on a positive note, as the S&P 500 gained 3.8 percent during December and closed the year up over 18%. After declining nearly 34 percent in less than five weeks in the spring when the Covid-19 pandemic accelerated, the large cap US stock index spent the majority of the remainder of 2020 recovering.

Investors were rewarded in November as several stock indices provided double-digit monthly returns. Two stories in particular seemed to have driven the stock market surge; significant progress toward COVID-19 vaccinations and the diminishing uncertainty related to the US Presidential election outcome.

Risk assets generally fell in October as hopes for additional stimulus before the election faded and investors saw a resurgence of COVID-19 cases in many parts of the world. The S&P 500 lost 2.7% during the month resulting in a 2.8% gain year-to-date . Tomorrow is the US Presidential Election, and hopefully we will have a clear outcome that evening or shortly thereafter.

Risk assets generally fell in September as investors continued to monitor the COVID-19 global pandemic and its economic impact. The S&P 500 lost 3.8% during the month resulting in a 5.6% gain year-to-date .

Risk assets rose sharply in August as investors digested US economic and corporate earnings data for the second quarter of 2020 and tracked the progress of a potential new stimulus bill from Washington. The S&P 500 returned 7.2% during the month resulting in a nearly 10% return year-to-date.

Risk assets rose sharply in July as investors digested US economic and corporate earnings data for the second quarter 2020 and tracked the progress of a potential new stimulus bill from Washington. The S&P 500 returned 5.6% during the month, led by the consumer discretionary sector, which is now significantly composed of e-commerce companies like Amazon, which returned 9.0% during the month.

The first half of 2020 has seen many unprecedented events, both in terms of the impact on society from the COVID-19 pandemic as well as the resulting extreme movements in risk assets. The year began on a relatively optimistic tone as US equity markets marched toward all-time highs in February, aided by tailwinds from stable economic conditions, an accommodative Federal Reserve, and substantive progress on the US-China trade dispute.

May marked another month in the recovery of risk asset prices following the declines in February and March. Investors continued to be optimistic regarding the potential for a COVID-19 vaccine as well as the resumption in economic activity as stay-at-home orders and business closures were relaxed. Despite the unprecedented decline in the US economy that is still unfolding, US equities, as measured by the S&P 500 index, rose 4.8% during the month and are now down just 5.0% for 2020 and 10.1% below their all-time closing high of 3,386 set on February 19.

After a difficult first quarter of 2020 for investors, April provided a much-needed reprieve as markets rallied sharply. US large cap equities, as measured by the S&P 500 index, had their best month in decades returning nearly 13%. Investors appeared optimistic that the significant stimulus provided by governments and central banks, lower energy prices, and evidence of potential new treatments for the COVID-19 virus could result in a swift recovery.