When you start from zero, the only way to go is up. After the economic consequences of shutting down the economy are becoming a reality, daily and weekly data suggest a recovery might be brewing. The operative word here is “might”. Because of copyright restrictions I cannot share one of the articles from my research this week, but it stands to reason that, as states begin to loosen confinement restrictions, people will begin to open up. But this link to TSA checkpoint travel numbers 2019 & 2020, https://www.tsa.gov/coronavirus/passenger-throughput will give you an indication of some positives.
Does this mean we’re finally seeing a light at the end of a long, dark tunnel? By no means. Congress is doing what it does best, spend other people’s money. The House of Representatives passed huge spending bill last Friday and, regardless of what we all think and feel about deficit spending, a consensus is brewing for another bailout. In the meantime, stocks had a down week last week with Dow Jones Industrial average down 1.7%, the S&P 500 off 2.26% and the NASDAQ closed down 1.17%.
The attached article talks about the need for additional stimulus and, while there is no guarantee, I think we’ll probably get one. You have to get all the way to the last paragraph to find, and I quote,
“Gross domestic product contracted at an annual rate of 4.8 per cent, marking the 13th quarterly decline of more than 4 per cent since 1949, according to data compiled by Bloomberg. After each previous instance, the S&P 500 gained more than 10 per cent during the next 12 months.”
I also added an article about saving money on our cell phones. I hope you enjoy reading it as there are so many more opportunities than just the 3 or 4 main carriers. I found out something about data usage and the difference between being on a wifi network and just being out and about. Hadn’t thought to much about that but it makes sense.
Not sure what this week may bring but, there will likely be some bad days ahead. While progress on treating the virus and finding a vaccine are moving forward, we are still short of an open society. However, I personally believe that the free market economy and the governments working together will move us toward treatment and, hopefully, a vaccine.
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 make each day better than the last one. BTW, I can’t wait to take Jean out for dinner.
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.