The COVID-19 bear market saw the quickest equity market decline and subsequent recovery on record. To put this market volatility into perspective, the S&P 500 index took only 22 days to reach bear market territory.1 Within 159 days after hitting year-to-date lows in late March, the S&P 500 index closed at new record highs. While equity markets have largely rebounded on consensus expectations of future positive economic growth, a lack of a consistent response to combat the virus has led to uneven business re-openings and re-infections across states and localities, potentially making a complete economic recovery timeline uncertain.
In our latest paper, Update on Public Pensions: Bear Today, Gone Tomorrow, we provide observations regarding the state of municipal finances, public pension plans’ response and performance, as well as considerations for public pensions going forward.
1 Defined as a decline of 20% or more.