Market Update from the Global Asset Allocation team – October 2020
The end of the summer brought with it a shift in sentiment. In September, volatility resurfaced as investors weighed a resurgence in global coronavirus cases, the stalemate in negotiations for additional US fiscal stimulus, and looming uncertainty ahead of the US elections – which when taken together sparked some profit-taking after an extended stretch of equity market gains. The good news is that the global economy maintained some notable momentum, with stronger-than-expected economic data revealing a solid recovery taking hold. And at month-end, markets got some relief as US lawmakers appeared to be making progress towards pushing through new stimulus measures in Washington, even as a volatile presidential debate raised concerns about a chaotic election in November.
Vice President and Portfolio Manager, Global Asset Allocation and Private Markets Solutions
Global equity markets lost some steam in September and posted their first monthly decline since the pandemic-induced meltdown in March. The tech-heavy S&P 500 and Nasdaq assumed the brunt of the selling pressure and ended their five-month winning streak during the month. The Canadian equity market also declined for the first time since March, albeit more moderately. Looking abroad, international stocks pulled back in the broad exodus from risky asset classes, while emerging market equities also lost some ground but managed to outperform their developed market counterparts as China’s economic revival continued to lead the global charge.
[…]
