“This time is different” … or is it?
Volatility spiked to historic highs and stocks prices fell precipitously in the first quarter of 2020, driven by fears of a coronavirus-induced global recession.
During the fourth quarter, stock prices rose throughout the world, with the U.S. market and international markets both returning approximately 8% including dividends.
The third quarter saw a continuance of choppy stock market conditions.
Security selection has always been an important part of our investment process, along with a focus on quality.
Considering how low interest rates are relative to today's equity market...
So why are stock prices so volatile if the economy is not heading into a recession?
Major U.S. stock indices ended the third quarter of the year at, or near, all time peaks.
The same set of factors that have driven economic growth have been broadly positive for stocks.
These questions are key to the future direction of stock prices.