Do You Know How Your Portfolio Did This Quarter?

The past few weeks have been surreal to most Americans. We began 2020 full of hope, amid the longest economic expansion in history. Surely, a pandemic that has forced mandatory quarantines, social distancing, and a frantic hoarding of toilet paper and hand sanitizer, could not happen in the new decade.

Investors will have read how the Dow Jones Industrial Average rose last week as news of the largest economic stimulus package in history helped stocks recover. U.S. Treasury Secretary Steven Mnuchin said he expects the strong economic growth that the country has experienced over the past several years will continue. But one week of gains won’t change first-quarter results.

And while many investors have been following the headlines of the market’s roller-coaster ride, they are probably unaware of the effect it has had on their investment accounts.

In the days that follow March 31, clients will begin receiving their quarterly statements — either through snail mail or email — and that is when most investors will see how much value has been lost.

Whether large-cap, small-cap, growth, or value, all U.S. equity investment styles are in negative territory for the quarter. Emerging markets and global markets have also suffered losses in the double-digits. An index of U.S. aggregate bonds is in positive territory, but other fixed-income markets are down as well.

How will investors react when they see these statements? Will panic selling ensue? Or will they remember lessons about buying on the dip? One thing is for sure — the second quarter should prove to be just as interesting as the first.

Disclosure: Markets are in constant flux, and the only thing certain is continued uncertainty. This information is for educational purposes only and should not be construed as trading advice. Past performance is not an indication of future results.