The experience in the first quarter of 2020 was not beyond imagination, but far from our thinking as we started the quarter. The necessary sudden stop to our economy, due to COVID-19, was stunning. The S&P 500 Index dropped -19.6%, small cap stocks (Russell 2000 Index) down -30.6% and international stocks, (EAFE Index), down -22.8%. Value stocks suffered more than growth stocks and oil prices plummeted.
The BC Aggregate Bond Index was up +3.1% for the quarter, yet most bond funds that held significant credit or international bonds were negative. Municipal bond funds struggled, and high yield bonds were down -11.5%.
The Federal government responded with speed and scale using fiscal and monetary responses to help stabilize the markets. Fortunately, our economy entered this unexpected turn of events in what we believe was good shape. While there are likely to be material long-term changes to the economy and how we do business, we are certain we will heal from this.
Opportunity is everywhere – to give, to innovate, to invest.
Click here to read our full 1Q20 Capital Market Review.