A Message from Webster Bank 5/1/2020

The stock market hit its lowest point of 2020 on March 23.  Since then the stock and bond market have seen positive results. US stocks, as measured by the S&P 500, rallied over 30 percent and investment grade bonds, as measured by the Bloomberg Barclays US Aggregate Bond Index, appreciated just under 4 percent (returns reported occurred March 23 – April 30).  Because of strong results in 2019 and the rally in April 2020 all Plan of MA & RI strategies have seen positive returns over the last 12 months as of April 30, 2020.*

Due to the global pandemic markets will likely continue to experience high levels of volatility over the coming months.  This volatility will be the result of market participants reacting to negative economic data and poor earnings reports from global corporations.   However, due to the capital markets being forward looking we believe they will move higher over the medium to longer term as investors price in economic growth that will come following the current challenged period. 

PLAN of MA & RI considers many factors when selecting the appropriate investment strategy for each participant. PLAN of MA & RI does not invest any participant’s funds fully in stocks.  As a result, no participant’s account will see losses or gains as significant as those reported on the nightly news.

 *Footnote:  Individual performance at the beneficiary level will be dependent upon several variables, including cash flows and timing for investment of funds.