Covid19 is not going away anytime soon. We do not know when the planes will fly regularly, restaurants open properly and movie theatres have something to show. Ironically. September lived up-to its reputation as being the most negative of the months for stocks. Still the S&P/TSX Total Return Index rose 4.7% in the quarter. Sector performance was widely distributed with the Industrials, Utilities, Materials, Consumer Staples and Consumer Discretionary sectors strongly positive while Health Care and Energy were strongly negative. Year-to-date the index is down 3.1% with Information Technology and Materials the most positive while Health Care and Energy have been the most negative. Worldwide stock markets generally rose in the quarter particularly in the US with technology rich NASDAQ up by 11%.
Hot sectors anticipate earnings will come
roaring back. I too am hopeful for the rest of the year although we still have
the pandemic in second wave and no vaccine yet. A new administration and
perhaps a new senate means any recovery must come from the consumers and
businesses. Upcoming growth will change many things from what sectors flourish
and which will bite the dust, to will the bond yield stay at zero, or negative
or rise sharply. We just don’t know.