From Equity Research
Despite the ravages caused by the global COVID-19 pandemic, 2020 will go down in history as a volatile but overall very strong year for equity investors. It was a year that saw the S&P 500® index crater by 32% in the first quarter of 2020 before rebounding sharply on the heels of unprecedented fiscal and monetary stimulus efforts. The U.S. Federal Reserve and other major central banks along with strong government stimulus efforts drove a second quarter 2020 snapback followed by solid further recovery through year-end. During December, equities added to gains for the year while the VIX Index or “fear gauge” climbed as the new year approached. For the full month, all three major equity indexes increased with the Dow Jones Industrial Average up 3.3%, the S&P 500® index up 3.7%, and the smaller cap weighted Russell 2000® increasing 8.5%.