Weekly Recap: What We’ve Been Reading

News & Commentary

Aug 08, 2020

In our weekly recap this week, we are including articles about how different stocks have been impacted by the virus, some insight on the race for a vaccine and our own market insight post.

Stocks Turned Upside Down? The Covid-19 Beta Effect – CFA Institute

A little bit analytical, but an interesting article. It highlights the acceleration of trends due to the virus by showing the change in performance of different market sectors and stocks relative to the market since the crisis started. It concludes that there may be more risk in areas that are generally less risky and less risk in areas that usually carry more risk

The Market is Underpricing the Possibility of a Vaccine, Goldman Sachs Strategists Say – Wealth Advisor

Well, let’s hope they are right. You may read the headline and think that they are crazy considering the current market levels. However, they are really talking about the parts of the market that have not participated in the recovery since March. Their thesis is that a vaccine is not priced into the cyclical stocks and they may rally when the virus is truly under control.

Market Insights August 2020 – Alliance Wealth Advisors

This is a great post organized by our Managing Director, Chris Ross. It has some great data in it including the market performance for the month and some key economic data. It was definitely another month that left a lot of people wondering why the market has been rallying despite a lot of bad news.

The first two articles highlight a lot of the same points from completely different views. They both indirectly say that the market is continuing to be led by technology stocks. One just happens to be more technical and the other relates it to the sentiment towards the virus. The last article was not only a way to promote a new monthly post that we’re very excited to share with our readers, but it also contains a lot of timely information. I hope you enjoy it.


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