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Market Recap: Second Quarter 2020
The second quarter of 2020 posted the best quarterly performance for stocks since 1998, with major benchmark indexes making sizeable gains over their historically poor first-quarter tallies. Much of the second-quarter growth in the stock market and economy was a bounce back from a dismal March and April when pandemic-related lockdowns and restrictions virtually shut down the economy. Nevertheless, stocks rose as investors focused on favorable economic data and the possibility of further government stimulus, despite rising virus cases and tepid trade relations with China. The quarter’s performance highlighted a persistent theme that started when the coronavirus pandemic captured headlines:
Fab five stocks are driving this market
Did you know that the five largest stocks in the S&P 500 now account for 22 percent of the index’s market capitalization? That’s the latest report at last check, according to Goldman Sachs. The soaring share prices of Alphabet, Amazon, Apple, Facebook and Microsoft — which all set new highs in recent weeks — has led to this record degree of market concentration, which makes some analysts nervous. As of this writing, the top five stocks are up 35 percent collectively. The index’s other 495 companies are down 5 percent. The top five stocks trade at a valuation of 31
Azzad remembers the victims of Hiroshima and Nagasaki
This month, the world commemorates the 75th anniversary of the atomic bombings of the cities of Hiroshima and Nagasaki. As we see in the headlines, nuclear weapons still pose a grave threat to humanity. The world’s nine nuclear-armed nations are modernizing their arsenals, key arms control agreements are being abandoned, and nuclear know-how is pursued by nations around the world. The Red Cross and other relief agencies have warned repeatedly that no meaningful humanitarian response would be possible following a single nuclear detonation anywhere, let alone in the aftermath of a full-scale nuclear war, and the risks are greater than
Think twice before speculating on a COVID-19 cure
Headline-induced price swings suggest that investors are making investment decisions driven by hopes and fears, and possibly based on limited information. As hundreds of companies race to develop vaccines and drug therapies that could help end the COVID-19 pandemic, news reports on successful or failed trials affect individual stock prices and can trigger swings in the broader market. Understandably, this highly contagious virus — and its severe economic repercussions — has a knack for stirring up investors’ emotions. By late May, COVID-19 was responsible for more than 100,000 deaths in the United States and about 355,000 worldwide. Investors are human
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