U.S. Treasury yields declined across the yield curve last week, led by longer maturities. Markets are concerned about rising COVID-19 case counts in the U.S. and Europe, stalemated U.S. fiscal stimulus negotiations and the pausing of several coronavirus drug and vaccine trials.

Although the news trended in a negative direction last week, stocks held their ground and eked out modest gains, with the S&P 500 Index climbing 0.2%. Coronavirus cases have been rising in parts of the U.S. and throughout Europe, although mortality trends have been improving.

Many companies may need to turn to private credit to restructure post-Covid. We see potential for such investments to serve as growth assets and diversifiers when new sources of portfolio resilience are needed.

Investors pay attention to the stock market not just because they are investing in it, but because they consider the market one of – if not the most – accurate of all leading indicators. Said differently, the market, in its infinite wisdom, will lead the real economy and will tell us where the world is headed.

PMC Weekly Market Brief - October 19, 2020

Investors have seen more than their fair share of market volatility in 2020… and it isn’t over yet.

A monthly piece with timely charts and historical data leading into the election.