Advisors exhibited behaviors consistent with longer-term trends across the board. Allocation to cash remained unchanged this week at 4.09%.
Sustainability and ESG (Environmental, Social, and Governance) are the new buzz words in investing but – despite their popularity – they are often poorly understood.
One thing is for certain, there has been no lack of conversation surrounding the shape of the recovery across both equity and fixed income markets.
Allocations to cash were reduced by 21% this past week, the most significant drop in cash levels since crisis began.
In my Viewpoints commentary from mid-March, we were in the throes of a record selloff with a drop in asset prices across all asset classes. The COVID-19 pandemic was firmly entrenched in the northeast United States and spreading quickly.
Cash increased marginally from 5.11% to 5.25% last week. Cash is sustaining at roughly two times the average since early April. Advisors remained risk averse again this week favoring less risky assets, which is a continuation of long-term investing behavior.
It’s no secret the world has gone crazy and there will be many rippling effects across the economy, many of which we can already measure as analysts pump out article after article about record-breaking indicators – often causing more fear than anything else.
Last week was a marked change for advisors with investment activity shifting back to fixed income categories.
In a normal presidential election year, June headlines would be filled with speculation about who the White House challenger will pick as a running mate