Stocks rose again last week, marking the first time since mid-April that equities enjoyed gains for two consecutive weeks.
The municipal bond market can be aptly described as a rollercoaster ride over the past several months. This applies to both the movement of yields and the emotional/mental toll it took upon participants.
China’s economy – the first to enter lockdowns and the first to emerge from them – is restarting. We see the economy likely returning to near-trend growth by late 2020, supported by policy stimulus, especially on the monetary front.
Review the performance of global stock and bond markets over the past week, along with relevant insights from T. Rowe Price economists and investment professionals.
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We’ll have a substantially better picture of how quickly global demand may recover.
The COVID-19 pandemic has made history in more ways than one, including catalyzing an economic downturn that cost the US more than 20 million jobs and a policy response that saw the Federal Government pass the $2.1 trillion CARES Act, the largest ever US economic rescue package. That said, we don’t think COVID-19 is finished filling up our history books. We think the long-term consequences of the virus could prove much more meaningful than what we have seen to date.
Global stocks rose on the gradual reopening of the economy and tempered virus cases. European leaders discuss stimulus proposals.
Companies globally are slashing dividend payments as they face a combination of declining revenues and regulatory measures discouraging dividend payments. Not surprisingly, companies are now prioritizing liquidity and solvency over returning capital to shareholders. We think investors can alleviate this problem with an investment approach that addresses two key aspects of dividend investing that can help maintain healthy dividend yields, even in this environment.
The coronavirus crisis, which ignited steep increases in credit spreads and temporarily froze segments of the fixed income market, can give investors insight into how different types of bonds perform in financial turmoil. In that vein, we looked at performance from companies with high quality financials and strong environmental, social and governance (ESG) practices. We think investors should take note of the value these characteristics offer in this market.