Dear Valued Client of Mundi Financial,
I hope this letter finds you and your loved ones safe and healthy.
The continued movement in the markets followed by all the economic headlines you see daily, can leave you searching for facts trying to make sense of all the information we see and hear. It has been about two months since the S&P 500 hit a record all-time high and about one month since hitting a low we have not seen since 2017. This made March the most volatile month in U.S. history. The S&P 500’s 34% drop between February 19 and March 23 was the fastest decline from a record bull market to a bear market. Nonetheless, thanks to massive government stimulus packages combined with some specks of COVID-19 relief on the horizon, the markets have rallied in the last few weeks. We are seeing gains on major U.S. indices north of 10% for the month of April. The S&P 500 is now down approximately 9% while the Nasdaq 100 is down less than 1% year to date as of Wednesday, April 29.
Furthermore, earnings season has kicked off giving us a glimpse into how the pandemic affected the financials of key corporations during the first quarter. Many companies are even stating their expectations for the rest of 2020. We are watching this closely. The markets have shown optimism the last couple of weeks for two potential reasons due to talk of the necessary steps to reopen the economy and the flattening of the curve pertaining to new COVID-19 cases.
While it may take some time for uncertainty to subside, and for the U.S. economy to get back to normal, our firm remains long-term optimistic. With that said, we do expect short-term volatility to remain and a minor pull back given the recent gains will be normal. Although we are optimistic, there are still many unknowns we face coming out of COVID-19, thus we will air on the side of caution in the short term. Some of our solutions still have cash on the sidelines and we are still looking for favorable entry points going forward. Sectors that should provide some opportunity remain Consumer Staples, Healthcare and Technology.
Our focus is on managing risk at Mundi Financial yet there is some risk that is out of our control. Examples include attacks on seniors and individuals more specifically alluding to identity theft or credit card fraud. In light of the pandemic, these instances remain at an all-time high. To lessen that risk we will be hosting a webinar featuring well renowned expert Robert Siciliano as he shares the simple things you can do to protect you and your loved ones. The event will be held on Tuesday, May 12th at 4pm. Be on the lookout for the invitation. I am sure you will not be disappointed.
Thank you for your continued trust and confidence in our relationship. We remain available to you and your family however we can help. Most importantly, we hope you and your family stay safe.
Wishing you and your family safety and health,
Bill Krivicich, CFA
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult with your financial professional, attorney, or tax advisor with regard to your individual tax situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.
*The S&P 500 or Standard & Poor's 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. You cannot invest directly in an index.
*NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. The NASDAQ Composite includes approximately 5,000 stocks.