Menu
COVID-19 & Your Finances Market Insights News

Market Update: Investors Optimistic as Global Economies Reopen

June 18, 2020

author:

Market Update: Investors Optimistic as Global Economies Reopen

COVID-19 & Your Finances Market Insights News

The quickest bear market in the history of the US S&P 500 turned into the best 50-day bull market rally in history in May. By market close on June 3, 2020, the S&P 500 Index was up 37.7% from its March 23, 2020 low.

This bullish investor sentiment has been based on the continued decline in new coronavirus (COVID 19) cases in Europe, North America and Asia, and the ongoing reopening of economies worldwide. Meanwhile, global central banks and policy makers continued to provide stimulus and liquidity to the financial markets and global economies. 

Where do we go from here?

The next two quarters should reveal whether the market’s speed of recovery is aligned with reality, or not. For now, we remain cautiously optimistic. 

While equity markets and all WealthBar portfolios have surged rapidly in the past two months, there remains many uncertainties regarding the pace of economic growth. All signs suggest we’ve entered a global recession, yet investors appear optimistic as economies across the globe have begun reopening. It could take some time before global supply chains, trade, travel, employment, and consumer spending return to pre-pandemic levels.

If expectations disappoint, market volatility could come back into play, just as we’ve seen so far in June.

Performance*

Here’s how market trends affected WealthBar portfolios in May:

ETF Portfolios

May performance1-Year performance
ETF Safety Portfolio+0.87%+2.45%
ETF Conservative Portfolio+1.63%+3.47%
ETF Balanced Portfolio+2.45%+3.56%
ETF Growth Portfolio+2.75%+4.13%
ETF Aggressive Portfolio+3.04%+3.94%

The composition of each portfolio and further information can be accessed by clicking the portfolio name.

Private Investment Portfolios

May performance1-Year performance
Safety Private Portfolio+0.65%+3.25%
Balanced Private Portfolio+0.97%+3.80%
Aggressive Private Portfolio+1.21%+1.47%

The composition of each portfolio and further information can be accessed by clicking the portfolio name.


*This is a hypothetical illustration of our portfolio performance as of the date noted above. The time-weighted performance is displayed in Canadian dollars and assumes daily rebalancing (unless otherwise stated) and the reinvestment of distributions. Private Investment Portfolios assumes monthly rebalance. It is reflective of the model portfolio’s target holdings and weights including portfolio changes. The performance is net of the management expense ratios (MERs); however, does not include WealthBar’s management fee or taxes. Performance is annualized for all periods greater than one year. This performance may differ from clients’ actual account return due to the timing of deposits, withdrawals, buys and sells, and the reinvestment of distributions.

The performance provided is for informational purposes only and is not to be considered as investment advice. Portfolio performance is not guaranteed. The value of your investment can go down, up and change frequently. Past performance is not indicative of future returns. There may be significant differences between the investment portfolios that are not discussed here, including different investment objectives and risk factors. You should always consider, in any investment decision, your investment objectives, needs, circumstances, restrictions, tolerance for risk, financial goals and investment time frame.

Although WealthBar believes the obtained information provided from third-party sources to be reliable, WealthBar does not guarantee the information and disclaims any liability associated with the use of these performance results. Source: Morningstar Direct. For full details of calculation please contact: info@wealthbar.com.

A few minutes today could save you thousands tomorrow.
Start investing in under 5 minutes. No hold music. No paperwork.