Acumen Portfolio Performance YTD 2020
Commentary on Portfolio Performance – August 2020
Acumen & Trust’s portfolios enjoyed a profitable August as they climbed steadily throughout the month without any major slipups along the way. Covid-19’s resurgence remained strong as countries around the world reported the highest number of cases for months. The recovery rally continued for equity markets with both the S&P500 and NASDAQ reaching new all-time highs, driven mainly by outstanding performance by tech stocks. European markets have been lagging their US counterparts due to a lower reliance on tech stocks and an increase in Covid-19 cases. A weaker US dollar reduced the return from US equities in € terms.
The US Federal Reserve announced a change in their mandate which effectively means that interest rates will remain low for the foreseeable future, until inflation rises and remains above their 2% target. Gold started off the month by crossing $2,000 an ounce for the first time before retreating back below this level on improving investor risk sentiment.
Volatility continues to remain subdued as our portfolios approach being positive for the year.