- The major U.S. equity indices finished April with one of their best months in history, with the S&P 500 rallying 12.7%. The market appears to be pricing in a quick recovery from the coronavirus and its related disruption of business.
- Year-end 2020 and 2021 consensus earnings estimates for the S&P 500 have been coming down over the past two months as companies report Q1 earnings and deliberate the impact of the nationwide shutdown. Analysts’ consensus estimates for the S&P 500 earnings are currently $133 for 2020 and $167 for 2021. This compares to $163 in 2019. 2020 earnings are dependent on the pace and success of reopening the economy over the next several months, while 2021 is expected to be a return to normalcy.
- The oil industry remains under pressure as the price of a barrel of oil continued its decline in April. WTI crude began the month at $21 per barrel and closed the month at $18, after having traded in negative territory during the month. A glut of supply as economic activity declines has been a big driver of lower oil prices.
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
If you would like to receive your copy of the Economic Outlook and Investment Review monthly in the mail, call Ed Sullivan, Vice President, at 617-557-9800, or email him at firstname.lastname@example.org.
Make sure to bookmark our Perspectives webpage so you can stay up to date with the most recent weekly Welch & Forbes insights, announcements, and content. To receive our monthly email digest, simply enter your email address in the banner on this page.
Access your complimentary Wealth Planning Suite
Includes your √ Initial Consultation √ Portfolio X-Ray© √ Estate Plan Review √ Financial Plan
Estate Plan Review
*There is no fee for the Initial Consultation or Portfolio X-Ray© for prospective clients. Portfolio X-Ray© is a Morningstar product that Welch & Forbes maintains a license for its use. The Estate Plan Review and Financial Plan are provided only to clients.