Our Weekly Commentary
Severin Commentary 6/22/2020
After a steep sell off for all major averages last week, the markets rebounded on continued optimism about the economy reopening. In particular, the S&P 500 rebounded over 2% and remained above the 200-day moving average, a long-term technical indicator for determining overall long-term market trends. It is critical that the S&P maintains its 200-day moving average because it shows that investors believe the comeback is real and here to stay.
The Information Technology and Health Care sectors enjoyed the biggest gains for the week, up 2.79% and 3.12% respectively. The losers for the week were Utilities and Energy, down 2.39% and 0.96% respectively. Partly, this is due to the fact that the International Energy Agency and OPEC said that the demand recovery may take longer than expected1.
On Friday, Apple released a statement saying it is closing stores down again2 in Arizona, Florida, North Carolina, and South Carolina where the coronavirus case count has increased. This caused heightened volatility and market sell off late Friday afternoon. The fundamental economic indicators this week will be telling as to how quickly and efficiently the economy will recover. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. To determine what is appropriate for you, consult a qualified professional.
Investment advice offered through Severin Investments, a Registered Investment Advisor.
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(866) 983-2707. www.SeverinInvestments.com