Congress is headed back to Washington and there is a great expectation that another stimulus package is on the way. So the question becomes “How large will the bill be and how much more debt will be to be added to the federal deficit?”
The attached article makes it pretty clear that one is coming, presenting another question, “Do we need it?” Politics will win out over economics because everyone is running for office this year except for 66 fortunate US senators. So somehow the two sides of congress will agree to a new spending bill and the money will flow.
The three equity indexes were all positive for the week with the S&P 500 leading the way. Earning season has started for the 2nd quarter and there have been some surprises. The opinions are as numerous as the number of talking heads that have access to a microphone or a newspaper column. The number of Coved-19 cases have increased dramatically but, then again, so has the testing.
I still have no idea on which way things will go short term, but history is on our side. The long-term return for stocks has, historically, outperformed the inflation rate and helped investors maintain their purchasing power.
As always, should you have any questions or wish to talk, please don’t hesitate to email, or call me.
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.