For the past 2½ months it seems like Captain Kirk and the starship Enterprise have taken over the world and put it at warp 9.
- Virus spread from Wuhan to US in 6 weeks
- S&P 500 dropped 34% in 23 trading days
- S&P rallied 25% in 13 days
- Federal Reserve cut the Federal Funds target to 0.00-0.25% in 12 days
- $2.4 trillion om fiscal stimulus in 3 weeks
- All 3 stock indices had double digit percentage increases in April
In other words, everything is moving pretty fast. Last week brought the beginning of what we all hope is the restarting of the once proud US economy. And, we all hope it will be like a butterfly emerging from the cocoon. If equities are a precursor of things to come, April joins the list of shocking events over the last 2 ½ months. All 3 indexes had double digit percentage gains. So, will it be a butterfly or just a moth? Only time will tell.
The attached article, “The Stock Rally is Real, Spectacular and Getting A Bit Excessive” indicates a positive note on the economy with the caveat that getting back to normal may not be as quick as some investors think. But the article does outline some very positive points indicating that the economy will not deteriorate as much as thought. It just might take a little longer time frame to get there. I hope you read it.
As always, should you have any questions or wish to talk, please don’t hesitate to email or call me. Now, let’s all go out have a super week.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.