Obsidian Market Update 5/29/20

Good morning,

As usual, everything in the news is changing all the time around COVID, recommendations, reopenings (and reclosings), and the stock market. This week, we thought we would provide some quick market updates to catch everyone up on what is going on.

Overall, as of Friday, May 22, the S&P 500 is down 7.8% YTD (total return). Only 92 stocks in the index are up at the year to date (whereas in 2019, only 62 stocks were down for the year). The S&P 500 comprises 500 stocks chosen for their market size, liquidity, and industry group representation. Each stock’s weight in the index is proportionate to its market value. Industrials led the S&P sectors this week, followed by energy and real estate. Analysts will be watching for production and consumption adjustments by market participants as shutdowns tentatively end in some areas. (BTN Research)

The bad news is that the period from February 19 to March 23, 2020, was the worst 23 day trading period in the last 30 years. (BTN Research)

The good news, though, is that since bottoming on March 23, the S&P 500 has gained +32.6% (total return) over the period ending on May 22. That is the second-best 43-day trading period of the last 30 years. The best 43-day trading period was from March 9 to May 8, 2009, which kicked off the 11-year bull market ending on February 19, 2020. (BTN Research)

Also of interest is the new 20-year Treasury notes, of which the government auctioned off $20 billion worth in the week on May 20, 2020. This is the first time 20-year notes have been sold since 1980. Subsequent auctions of 20-year notes are scheduled monthly going forward. (US Treasury Department)

Finally, a fun fact for those of us who have discovered our love of baking during quarantine: did you know that the 100 folds on a chef’s hat represent the 100 ways to cook an egg? The number of pleats in a hat was meant to signify a chef’s level of accomplishment as judged by egg cooking skills!

Past performance is no guarantee of future results.  Securities offered through Triad Advisors, member FINRA/SIPC. Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.