Sage Advice Tactical ETF Quarterly Market Review 2Q2020

While the equity rebound has been impressive, stocks still find themselves down for the year and facing a back half full of challenges. Near-term sentiment is riding high on rebounding data that has been surprising to the upside and strong policy efforts that have been supporting markets and the economy. Policy support may prevent a collapse in risk assets, but hindrances to meaningful upside include higher valuations and uncertainty surrounding the virus, earnings, and political fronts. For fixed income returns, we hold an optimistic outlook. Despite meaningful spread tightening over the last three months, valuations in most spread sectors are still priced for upside, while equities appear more fully valued given the rebound. High yield and other non-core fixed markets especially look attractive from a risk/reward perspective than most core equity markets.