Keeping 2020 markets in perspective

Stay focused on goals from crisis to recovery

Webcast:

Live briefing: Active Insights

Jason Vaillancourt, CFA, Co-Head of Global Asset Allocation
Chris Galipeau, Senior Investment Director

"History has shown us that stock markets typically hit their bottom before the worst news arrives."

Shep Perkins, CFA
Chief Investment Officer, Equities Portfolio Manager of Putnam Global Equity Fund

Read our outlook for how and when equity markets recover

How markets recover

Staying invested even when markets are volatile can serve investors well

History shows that some of the market's best days occur shortly after bad days. By staying fully invested over the past 15 years, you would have earned $18,060 more than someone who missed the market's 10 best days.

This example:

$10,000 invested in the S&P 500

(12/31/04–12/31/19)

Time, not timing (PDF)

Learn more:

The U.S. stock market has been resilient throughout its history. Stocks routinely recovered from short-term crisis events to move higher over longer time periods.

Focus on goals

Think about your objective

What are you looking for? Consider this Get the facts Prospectus
Current income, capital preservation, and liquidity Putnam Government Money Market Fund (PGDXX)
Current income, capital preservation, and liquidity Putnam Money Market Fund (PDDXX)
Capital preservation and income Putnam Ultra Short Duration Income Fund (PSDTX)
Income Putnam Income Fund (PINCX)
Tax-exempt income Putnam Tax Exempt Income Fund (PTAEX)
Growth Putnam Growth Opportunities Fund (POGAX)
Sustainability Putnam Sustainable Leaders Fund (PNOPX)

Financial Professionals: Five planning strategies for volatile markets

As equity and fixed income markets adjust to economic shocks, it may also be helpful to think about key planning considerations.

1. Is it time to consider refinancing mortgage debt?

2. Would a Roth conversion improve tax diversification?

3. Do asset values change gifting strategy?

4. Can you harvest tax losses?

5. How do you manage holdings of company stock?

Read our Wealth Management blog.

Market Updates

Find recent news and portfolio manager insights

Policies need traction before recovery takes root

Jason Vaillancourt, Co-Head of Global Asset Allocation, CFA, talks about the impact of the fast-fiscal response from policy makers, and the data he needs to shape tactical allocations in the second half of the year.

Moving forward when RMDs are suspended

Moving forward when RMDs are suspended

The CARES Act provisions suspended RMDs for this year and may impact investors' financial plans.

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Companies suspend dividends to preserve cash

Hit by the economic downturn, many companies are suspending or reducing dividends. S&P Dow Jones Indices noted that dividend net changes for U.S. stocks declined $5.5 billion in Q1, marking the first quarterly drop since Q2 2009, and the worst since Q1 2009. The trend may continue. As of April 30, 19 S&P 500 companies increased second-quarter dividends, 12 decreased, and 12 suspended them. S&P 500 dividends totaled $485 billion last year. Dividend futures project this year’s total may be $415 billion, and it may take seven years for dividends to rebound to 2019 levels.

Planning for college in challenging times

Planning for college in challenging times

Planning for college can be challenging in the near term but families and students can still make progress toward their goals.

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Will April rally continue in May?

U.S. equities posted double-digit gains for the month of April, with the S&P 500 rising 12.82% after declining 12.35% in March. Consecutive monthly moves of 10% or more in the S&P 500 have occurred only once before during the past 50 years. The April rally happened despite an historic drop in economic activity. Real GDP contracted 4.8% in the first quarter, according to an advance estimate by the Bureau of Economic Analysis.

States, businesses hope for more economic aid in next pandemic relief bill

States, businesses hope for more economic aid in next pandemic relief bill

Many lawmakers are planning for a fourth phase of pandemic relief funding, which could include aid for states and individuals.

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Live briefing: Active Insights

Live briefing: Active Insights

Jason Vaillancourt, CFA, Co-Head of Global Asset Allocation
Chris Galipeau, Senior Investment Director

Five planning ideas to consider under the CARES Act

Five planning ideas to consider under the CARES Act

The CARES Act provides emergency assistance to those affected by the pandemic with a range of programs from expanded unemployment benefits to loans.

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Consumer confidence spirals down

As efforts to contain the coronavirus weighed on the economy, consumer confidence plummeted in March. Not surprising, a negative short-term outlook was the biggest drain on The Conference Board, University of Michigan, and Bloomberg indexes. Confidence could become a volatile indicator. The University of Michigan noted that consumers viewed the pandemic conditions as temporary, resulting in a less severe long-term outlook. Rapidly changing events, however, could test that view.

Managing risks across fixed income

Managing risks across fixed income

Brett Kozlowski, CFA, Portfolio Manager
Emily Shanks, Portfolio Manager
Richard Polsinello, CIMA®, Senior Investment Director, Fixed Income

Volatility complicates earnings estimates

The economic shock of the coronavirus pandemic and policies to contain it has disrupted the outlook for corporate earnings. By March 31, bottom-up EPS estimates for the S&P 500 Index started trending down (see graph), S&P Dow Jones Indices reported. As of April 3, 104 S&P 500 companies have issued guidance.

CARES Act loosens rules for retirement accounts

CARES Act loosens rules for retirement accounts

Among the many provisions of the CARES Act are modifications of the rules involving retirement accounts to help both retirement savers and retirees.

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Markets wrestle with policy versus the pandemic

Markets wrestle with policy versus the pandemic

We are looking for progress in public health and credit market indicators as policy responds to the economic shock surrounding the pandemic and efforts to contain it.

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Investing for growth in volatile markets

Investing for growth in volatile markets

Richard Bodzy, Portfolio Manager
Gregory McCullough, CFA, Portfolio Manager
Jyotsana Wadera, Senior Investment Director, Equities

Joblessness rises

Weekly jobless claims soared to 6.6 million as of March 28 — the highest level since tracking began in 1967. With 3.3 million claims in the previous week, the tally is close to 10 million since businesses closed in many states to help stop the spread of COVID-19. The March jobs report showed a drop of 701,000 jobs, with data collected before many business and school closures, the Bureau of Labor Statistics noted. The Congressional Budget Office expects the unemployment rate to exceed 10% in the second quarter.

Three things business owners need to know about the CARES Act

Three things business owners need to know about the CARES Act

The CARES Act has multiple provisions to help small businesses and employees weather the economic downturn.

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An unprecedented quarter

The VIX Index surged 290% as markets reacted to the Covid-19 pandemic in the first three months of 2020. The 10-year Treasury Note yield reached all-time lows, closing at 0.54% on March 9. The Federal Reserve slashed the federal funds rate by 1.50% during March and pledged to purchase bonds and mortgage-backed securities in “the amounts needed” to support the markets. Initial jobless claims rose by 3 million to 3.2 million in the last report of the quarter as the economy began to adjust to the crisis.

Did the market turn bullish in late March?

On March 26, 2020, the Wall Street Journal reported that the Dow Jones Industrial Average “climbed 6.4%, putting the blue-chip index more than 20% above its recent low, a move that starts a new bull market and marks the shortest bear market in the index’s history.” However, the S&P 500 and Nasdaq indexes did not cross the 20% threshold. Some would argue a true bear market persists longer. You can see bull and bear markets that lasted four months or more in this illustration of how market rebounds last longer than declines.

Volatile markets have up days as well as down days

On March 24, 2020, the Dow Jones index jumped more than 11%, its biggest one-day rally since 1933. The Dow remains in bear market territory as the U.S. and global economies slow down in response to the COVID-19 pandemic.

Massive COVID-19 spending bill to help individuals, businesses

Massive COVID-19 spending bill to help individuals, businesses

The Senate passed the CARES Act which provides emergency assistance for individuals, families, and businesses affected by the COVID-19 pandemic.

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Update on PSDYX

Update on PSDYX

Bill Kohli, CIO, Putnam Fixed Income
Joanne Driscoll, CFA, Portfolio Manager
Jo Anne Ferullo, CFA, Senior Investment Director

Planning opportunities for challenging markets

Planning opportunities for challenging markets

Bill Cass, CFP®, CPWA®, Director Wealth Management Programs at Putnam
Chris Hennessey, Lawyer and CPA, Putnam Business Advisory Group

Manager insights on current volatility

Manager insights on current volatility

Putnam Investments hosted a webcast featuring insights on current volatility and the COVID-19 pandemic from three senior investment managers.

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Insights on current volatility

Insights on current volatility

Darren Jaroch, CFA, Co-Head of Global Asset Allocation
Bill Kohli, CIO, Putnam Fixed Income
Jason Vaillancourt, CFA
Chris Galipeau, Senior Investment Director

Giving clients perspective with Don Connelly

Giving clients perspective with Don Connelly

Don Connelly, Speaker, motivator, and educator
Jeff Churba, Regional Director

Slowing the spread of COVID-19 entails economic disruption

Slowing the spread of COVID-19 entails economic disruption

The global economic outlook has deteriorated because of the coronavirus pandemic amid rising supply and demand disruptions.

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The Fed reacts to coronavirus economic risks

The Fed reacts to coronavirus economic risks

The Fed made a proactive move to reduce the federal funds rate by 50 basis points.

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The impact of coronavirus on markets

The impact of coronavirus on markets

The spread of coronavirus infections is having an impact on China’s GDP and on financial market sentiment worldwide.

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Mapping the virus toll on China

Mapping the virus toll on China

The coronavirus poses a risk to China's growth as the government races to contain the outbreak, and the global economy could suffer.

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