Investment Review - August 2020
- The major U.S. stock indices improved in July. The Dow Jones Industrial Average increased by 2.38%, the S&P 500 was up 5.51%, and the Nasdaq Composite advanced 6.82%.
- The U.S. Dollar Index declined sharply by 4.15% in July. The Index measures the value of the U.S. dollar versus six major foreign currencies. A weaker dollar increases the cost of imports, lowers the price of exports to foreign purchasers and increases the value of overseas revenues and profits of international U.S. corporations.
- Cash trends in mutual fund investing are a proxy for market shifts in asset class investing sentiment. Stock funds posted an outflow of $63.0 billion in June, compared with an outflow of $38.6 billion in May. Bond funds had an outflow of $66.9 billion in June, compared with an outflow of $2.72 billion in May.
Sources: Bloomberg LLC, FactSet, U.S. Department of Labor
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.
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