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.[1]  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.[2]  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.[3]  How will the quarter-end? More will be revealed.

Best regards,

Roger Hewins

Roger Hewins

Team Hewins, LLC (“Team Hewins”) is an SEC registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. The information contained within this letter is for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any types of securities. Past performance is not a guarantee of future returns. It should not be assumed that diversification protects a portfolio from loss or that the diversification in a portfolio will produce profitable results. The opinions stated herein are as of the date of this letter and are subject to change. The information contained within this letter is compiled from sources Team Hewins believes to be reliable, but we cannot guarantee accuracy. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. For detailed information about our services and fees, please read our Form ADV Part 2A, which can be found at https://www.advisorinfo.sec.gov or you can call us and request a copy at (650) 620-3040.

[1] S&P 500 Data Source: Morningstar

[2] Small Cap Data Source: MSCI

[3] FAAAM Stocks Data Source: Morningstar

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