Our Weekly Commentary
Severin Commentary 7/14/2020
Domestic and international markets surged at the beginning of the week as the state-owned China Securities Journal came out and said that now is a good time to buy stock. They explained that ‘fostering a healthy bull market’ is very important during these times.
Markets were lower on Tuesday, July 7th, when the United States officially withdrew from the World Health Organization. An official from the Trump administration explained that they wanted the WHO to make certain reforms, but the WHO refused to act. "Because they have failed to make the requested and greatly needed reforms, we will be today terminating our relationship," the official was quoted as saying. This led to the market selling off, with all major averages down.
The end of the week was met with optimism even as the coronavirus case count increased substantially, with multiple states reaching record daily new cases. On Wednesday, July 8, there were 60,021 new Covid-19 cases reported in the US. This was the biggest single day spike on record, and the numbers continue to worsen.
The markets ended the week mixed, with the Dow Jones Industrial Average down .81%, the S&P up .17%, and the Nasdaq up 1.76%. Mega cap tech stocks like Apple and Microsoft continued to lead the market higher. As tech valuations approach dot com bubble levels, many are beginning to question how much more room there is for stocks to run.
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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