The major benchmarks we track produced positive total returns for the second quarter of 2020.

• The MS World Equity Index increased 19.54%.
• The Balanced Index of 60% MSCI World Equity and 40% BC US Aggregate Bond increased 12.71%.
• The Conservative Index of 40% S&P 500 and 60% BC US Aggregate Bond increased 9.79%.

Due to improved liquidity and higher P/E valuations, we are projecting that equities will produce positive annual total returns for the next twelve months. We believe that fixed income annual total returns will be very nominal to negative. Based on these forecasts, we are strongly emphasizing domestic and international equities over fixed income securities.We continue to favor short and intermediate term investment grade bonds over long-term bonds.

 

You can review our current outlook and policy by going to the Client Info page.