The unprecedented decision to shut down the global economy to help stop the spread of the COVID-19 virus brought
the longest bull market in US history to an abrupt halt. The first quarter of 2020 was the worst quarterly loss for global
equities since the fourth quarter of 2008 during the financial crisis.
During the fourth quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 4.13%, bringing the 2019 net return up to 15.92%.
During the third quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 0.32%, bringing the year-to-date net return up to 11.31%.
During the second quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 3.02%.
During the first quarter of 2019, the Global Wealth Strategy portfolio produced a net return of 7.68%. We believe combination of an oversold market and changes in the U.S. Federal Reserve’s (Fed) outlook on interest rates helped all asset segments in the portfolio gain more than 5% for the quarter.
The theme of low volatility that headlined our investment commentaries over the past three years came to a sudden halt in the fourth quarter.
Some of the themes we witnessed in the second quarter continued into the third quarter. Inflation Hedges (Defensive Equities, REITs, and MLPs) extended the charge, resulting in its best quarter since Q1 2017.
S&P Dow Jones Indices and MSCI are making major changes to the Global Industry Classification Standards (GICS®) structure effective the close of business September 21. The Telecommunication Services sector will be expanded to include selected companies from the Information Technology and Consumer Discretionary sectors and will be renamed Communication Services.
What a difference a quarter makes. The results may have been relatively boring for the
second quarter, but the change in market leadership was eye catching.
Q2 2020 Investment Commentary