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Market Commentary – August 2020

September 10, 2020

Bond Boondoggle

■ Risky assets rallied through July and into August amid a gradual reopening of the economy and persistent market support
by the Federal Reserve.
■ Federal support of the bond market has driven yields to record lows while inflation expectations have risen, implying
historically low real returns on corporate bonds.
■ As Fall approaches, the market’s attention will shift to the November election. The impact of potential policies on markets
will be evaluated by investors as will the controversial mail-in voting struggle between Democrats and Republicans.