GTC Trendline – Third Quarter 2020
Outlook: The year 2020 continues to surprise and will certainly be remembered as a year of almost unprecedented stock market volatility.
It has so far witnessed a pandemic, a shutdown of the global economy, the deepest recession since the 1930s followed by a global equity market collapse and subsequently, earlier in the quarter, record highs for U.S. equity markets.
Markets generally experienced some consolidation and correction during September but delivered positive quarterly returns. A risk on attitude emerged in terms of emerging markets and the MSCI Emerging Markets Index outperformed the MSCI World Index delivering 9.56% and 7.93% in dollar terms. However, this performance needs to be viewed against the backdrop of market returns for the year to date with the MSCI World Index delivering 1.70% and the MSCI Emerging Market Index a negative -1.16%.
