Salt Lake City Office
2150 East 1300 South,
The Economy and the virus…a tale of our times
Headwind—CORONAVIRUS—when can we normalize?
No one knows what the future holds. The prudent course of action now is to be careful. Scientists agree we are still in the first wave and there is potential for a second wave. A second wave could drop markets to another low point maybe even lower than we saw in March 2020. Remember that low points are buying opportunities.
Current Stock Market pricing is not reflecting:
If you are wondering with all the social chaos going on why there is no visible impact to stock prices, consider that the markets react to money.
During times of economic stress, active management generally outperforms passive management.
The game we call investing is a contact sport, for good blocking and tackling you need positions that include:
Keep Your Eye on the Ball
Balancing the Pros and Cons of Stimulus
The United States has printed mass quantities of money and the deficit has exploded, it is at 3.6 trillion up from 1 trillion and maybe more to come. Deficit concerns are justified—inflation could happen.
A Distant Second Headwind
The market will start to bake-in concerns over the 2020 election in August and September. The Market is not expected to care much who the winner is, Trump or Biden. A Democratic sweep might be worrisome to markets if the Senate Majority changes hands.
Historically, every financial crisis has been followed by a recovery.