Brad here. Today's post on the growing disparity we're seeing between growth and value stocks is brought to you by Peter Roberto, an investment research analyst on Commonwealth’s Investment Management and Research team. Take it away, Peter.

Brad here. Today’s post on the recent volatility of the U.S. dollar comes from Anu Gaggar, senior analyst on the Investment Management and Research team here at Commonwealth. Take it away, Anu.

Not too long ago, Brad wrote that the dollar is not going away. While that may be true, we are seeing considerable volatility in its value. What’s going on—and what does it mean for your investments? Of course, there is no crystal ball to answer such questions, but we can certainly take a deeper dive to better understand what is happening and how to deal with it.

Last week was relatively busy on the economic update front, with a focus on inflation, retail sales, and consumer confidence. The reports came in mixed, with better-than-expected results for consumer confidence and jobless claims offsetting disappointing retail sales data and faster-than-anticipated inflation in July. This week will be relatively quiet for economic updates, with releases focusing on the housing sector and the minutes from the Fed’s most recent meeting.

Today, I'd like to provide an update on the coronavirus, including the effects on the economy and markets. We had some good news on the pandemic front this week, with the virus now back under control. Nationally, the daily spread rate is down to around 1 percent per day, and the daily number of new cases has held steady at about 55,000. Plus, the data shows that outbreaks are being contained in most states. One area of concern is testing. The number of tests has trended down over the past two weeks, and the positive rate remains well above what it should be.

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!

Markets continued to rise in July, showing the second wave of the pandemic was not enough to derail the economic recovery. The S&P 500 increased by a strong 5.64 percent during the month. The Nasdaq Composite and Dow Jones Industrial Average (DJIA) also saw positive performances, marking a solid start to the third quarter. Although the continued market rebound in July was certainly welcome for investors, very real risks to markets remain, as we can see when we look at the key factors that matter when determining the overall risk level.

The good news is that the second wave of infections looks to have peaked and turned back down in the past two weeks. Case growth is down significantly from the peak, and the case growth rate has ticked back down to the lows seen in mid-June. Two weeks ago, we discussed the peak of the second wave, and this decline is the next step. The data indicates that, in most states, outbreaks are being contained.

Yesterday I appeared on CNBC’s The Exchange to discuss the sectors I favor right now and the markets. 

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!

We’ve reached that point in the election cycle where I've started getting questions, from both sides, about the effect of the upcoming election on the markets. “Surely,” the question goes (and note that it is not really a question), “if Candidate X wins, the market will tank for the following reasons . . .”

Last week’s major data releases all came in above expectations, helping to calm concerns that rising COVID-19 case counts are interrupting the economic recovery. Highlights included better-than-anticipated results for business confidence and hiring in July. This week will be another busy one, with updates focusing on inflation, retail sales, and the first look at consumer sentiment in August.