We just completed our second month of the second quarter of 2020, after the virus issue created a rapid bear market across the globe in Q1. Since that event we have been going almost day to day, hoping to see improvement and progress, against the virus itself and in the economy and financial markets.
Just as we were seeing some positive signs, our country is now faced with the tragic death of George Floyd and its violent aftermath. As we all react and start to work through the fundamental issues this awful turn of events raises, we focus, as always, on the financial issues our clients need to deal with.
Against this new backdrop, the country continues trying to safely reopen and go back to work. Despite the troubles, markets still seem to be looking forward to better outcomes. May was a great month for equities around the world. The S&P 500 was up close to 5% and is now down only 5% for the year. In late March we would not have expected anything like this.
Small-Cap stocks are making a bit of a comeback, up over 6.5% in May. Last week we saw both small and value make better gains than large and growth, but they still have a ways to go. The FAAAM stocks (Facebook, Apple, Amazon, Alphabet and Microsoft), now over 20% of the S&P 500 and 40% of the NASDAQ index, are still leading the equity markets year to date. How will the quarter-end? More will be revealed.
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 S&P 500 Data Source: Morningstar
 Small Cap Data Source: MSCI
 FAAAM Stocks Data Source: Morningstar