Weekly Market Bullets
for the week ending 3/20/2020
  • US Equity Markets posted their worst week since 2008, as measures taken to contain the spread of the coronavirus temporarily shut down much of the US economy. The S&P 500 dropped 15.0% for the week, having now declined over 32.0% from the all-time highs hit only a month ago on February 19th. For the year, the S&P 500 has lost 28.7%. The Nasdaq fell 12.6% for the week and is now down 23.3% for the year, while the Russell 2000 (small-cap stocks) was down 16.2% for the week to bring its losses for the year to 39.2%.

  • Global equity markets fared better than US markets last week, as China posted relative outperformance as it returns to normalcy now that the coronavirus has been contained there. No matter, declines in Europe and Asia caused Developed Markets to drop 7.2% for the week, bringing its losses for the year to 32.5%. Emerging Markets fell 13.2% for the week and is now down 31.2% for the year.

  • US interest rates were volatile despite the Federal Reserve slashing the Fed Funds rate to a target range of 0.00% to 0.25% from 1.50% and engaging in numerous other actions to increase liquidity in the market and support the economy. The yield on the US 10-Year Treasury rose to over 1.20% during the week before closing at 0.96% vs. 0.98% the prior week.
Of Interest to Us
  • While US Treasuries did not move much on the week, rates on US Investment-Grade Corporate debt spiked to 4.58% from 3.20% the prior week, and average yields on muni bonds nationally rose to 4.02% from 3.02% the prior week. This suggests that investors are demanding higher returns from corporations and municipalities in the face of likely cash flow issues with the coronavirus.
Market Data
for the week ending 3/20/2020
If you have questions about the markets or would like to talk about your investments, please contact me at  bfontana@invtrust.com  or via phone at 704.940.3544.
Investors Trust Company helps its clients make sound financial decisions by providing strategic advice and asset management services with a high level of personalized attention. If we may help you or your clients with their investment management needs, please contact one of our Relationship Team members at  trust@invtrust.com .