A quick reminder - this is our NEW website - look around while you’re here.
Q3 2020 Results were positive across the board looking at the top line major global categories. Overall in 2020 so far, it has been filled with more volatility and uncertainty than the average year. In many years, some trends and patterns will move across more than one quarter. Not so in 2020 underscoring the importance of a disciplined and diversified approach.
Here’s the Summary (page 3 of the Quarterly Market Review link below):
In the USA, which performed admirably at 9.2% (reminder: only one quarter), roles were reversed from long term expectations with “Large Growth” outperforming “Small Value”. To revert back to the mean, small value is poised at some point, that we cannot predict, to significantly outperform large growth stocks since small value has been out of favor in recent times.
Emerging Markets, a stock asset class that is more volatile than most, was a standout slightly outperforming the USA at 9.6%.
Interestingly while small stocks were not up as much in USA (4.9%) - small caps elsewhere in the world were up 10.1%, outperforming large cap in both Developed Countries and Emerging Markets.
Because the US Dollar was weak vs. many other world currencies, results from outside the USA were boosted from 1-3%.
The country by country results had a wide dispersion as always emphasizing the importance of diversification.
While we don’t emphasize “sector” investing, it’s interesting to note that because Covid severely limited all forms of transportation, and the electricity and energy they consume - and because most sustainability have little to no exposure to energy stocks, they were not weighed by their temporary underperformance in 2020. They’re down about 50% as a group.
Most sustainability portfolios had slightly enhanced returns because most of them have little to no energy
O’Reilly Wealth Advisors model portfolios, being highly diversified global portfolios were up from 3.5% to 7.1%, for models from 40% stock to 100% stock. Click to see or download model performance summary here.
Those are the highlights and you may click and open or download very detailed report, including a report on small value future prospects in our Q3 Quarterly Market Review.
We’ve also embedded the Q3 Quarterly Market Review below, so you can look at the report page by page.
Please email us, call us or use our contact page (note webinar on the form) to sign up for our 15 minute quarterly live webinar to be held Oct. 22, 12:30 p.m. via Webex.
