Summer Stocks in 2020

The markets just completed their best quarter in decades as they snapped back from the historic sell-off triggered by the coronavirus. The Dow gained 17.8% in the second quarter, its best quarter since 1987, while the S&P 500 finished the period up almost 20%, its best since 1998. The tech-heavy Nasdaq soared 30.6% for the quarter, the most since 1999.

What’s in store for the summer? The markets probably need to consolidate their big gains. With rising coronavirus cases all over the country and an election season with two, let’s just say, less than stellar candidates, it wouldn’t be a surprise to see at worst a 10-20% pullback, or at best, a relatively flat summer where the market churns but does not move up.

But be careful taking time away from the markets. This is 2020 after all, and I have frequently seen markets that should have been quiet during summer spike up with the temperature.

There are lot of stocks that have already begun to consolidate their prior gains and any of them could breakout during the summer.

So have fun, stay cool (and safe), but don’t ignore the markets.