If I had predicted in early April that just three months later, stocks would have rebounded and recouped most of their losses, you would have laughed at me. Yet, here we are. During the second quarter, there was a complete turnaround in sentiment, reflecting rising optimism for a vaccine for the COVID-19 virus and a nascent economic recovery.
Andrà tutto bene. It is an expression being used increasingly across Italian social media amidst the severe COVID-19 breakout in that country. Translated, it means “everything is going to be all right.” It’s a message of hope, a message of strength, and a message of looking ahead to better days.
In 2018 everything seemed to decline while 2019 was a year in which most investments gained significantly. It’s times like these that drive home how and why we emphasize and stress having a consistent and intentional strategy.
What a difference a year makes. A year ago, we were in the midst of a stock market rout. Recall that the S&P 500 fell 13.5% in the fourth quarter of 2018, as the Fed was still considering rate increases and the trade war with China was just beginning.