January was an eventful month with the inauguration of Joe Biden as the 46th President of the United States, the beginning of corporate earnings season, and the continued fight against the COVID-19 pandemic. For the month, the global stocks (as represented by the MSCI ACWI index) fell 0.5% while US large caps (S&P 500 index) fell 1%.

Markets wrapped up the year on a positive note, as the S&P 500 gained 3.8 percent during December and closed the year up over 18%. After declining nearly 34 percent in less than five weeks in the spring when the Covid-19 pandemic accelerated, the large cap US stock index spent the majority of the remainder of 2020 recovering.

Investors were rewarded in November as several stock indices provided double-digit monthly returns. Two stories in particular seemed to have driven the stock market surge; significant progress toward COVID-19 vaccinations and the diminishing uncertainty related to the US Presidential election outcome.

Risk assets generally fell in October as hopes for additional stimulus before the election faded and investors saw a resurgence of COVID-19 cases in many parts of the world. The S&P 500 lost 2.7% during the month resulting in a 2.8% gain year-to-date . Tomorrow is the US Presidential Election, and hopefully we will have a clear outcome that evening or shortly thereafter.

Risk assets generally fell in September as investors continued to monitor the COVID-19 global pandemic and its economic impact. The S&P 500 lost 3.8% during the month resulting in a 5.6% gain year-to-date .

Risk assets rose sharply in August as investors digested US economic and corporate earnings data for the second quarter of 2020 and tracked the progress of a potential new stimulus bill from Washington. The S&P 500 returned 7.2% during the month resulting in a nearly 10% return year-to-date.

Risk assets rose sharply in July as investors digested US economic and corporate earnings data for the second quarter 2020 and tracked the progress of a potential new stimulus bill from Washington. The S&P 500 returned 5.6% during the month, led by the consumer discretionary sector, which is now significantly composed of e-commerce companies like Amazon, which returned 9.0% during the month.

The first half of 2020 has seen many unprecedented events, both in terms of the impact on society from the COVID-19 pandemic as well as the resulting extreme movements in risk assets. The year began on a relatively optimistic tone as US equity markets marched toward all-time highs in February, aided by tailwinds from stable economic conditions, an accommodative Federal Reserve, and substantive progress on the US-China trade dispute.

May marked another month in the recovery of risk asset prices following the declines in February and March. Investors continued to be optimistic regarding the potential for a COVID-19 vaccine as well as the resumption in economic activity as stay-at-home orders and business closures were relaxed. Despite the unprecedented decline in the US economy that is still unfolding, US equities, as measured by the S&P 500 index, rose 4.8% during the month and are now down just 5.0% for 2020 and 10.1% below their all-time closing high of 3,386 set on February 19.

After a difficult first quarter of 2020 for investors, April provided a much-needed reprieve as markets rallied sharply. US large cap equities, as measured by the S&P 500 index, had their best month in decades returning nearly 13%. Investors appeared optimistic that the significant stimulus provided by governments and central banks, lower energy prices, and evidence of potential new treatments for the COVID-19 virus could result in a swift recovery.