We want to put you in a place to win. Here is what you need to know to get ready for the market this week.
60 Second Market Review
- Stock markets were down and businesses are navigating the new normal.
- The government signed a massive $484 billion spending boost to help. Will it help?
What to watch for?
- The framework to reopen the economy, can it help and how soon will it start?
- A few months can make such a big difference in this world (both in the past and future)
What we can help you do?
- We help you navigate these markets and help you protect and plan your money.
- We give you financial peace and clarity in even these wild times
The Full Report
What Happened Last Week?
The U.S. stock market ended down more than 1% on the week, despite a Friday surge. Given the stay-at-home orders around the globe, company earnings from the first three months of 2020 are struggling to hit their expectations.
- Less money being made, along with the lack of company guidance for the future, caused investors to hit the sell button.
- Think of your local restaurant – how can they possibly say how many burgers and pastas they will sell in the next few months? That’s exactly how investors feel about the market.
- It is hard for consumers to go on shopping sprees when they are stuck inside their homes with their families for 20-22 hours a day. Pretty easy to see why Amazon (up 30%+ this year) is doing so well.
However, the government is attempting to act swiftly to provide support, and the good news is that the market has recovered over half its losses so far in April thanks to it. The bounce has been just as shocking as the fall!
- The House of Representatives overwhelmingly passed a $484 billion spending bill to help replenish a new, but rapidly depleted, program for small businesses. Look around at the empty streets around you; small businesses are bearing the brunt of this economic collapse right now, and they need help. It can’t come fast enough.
- The bill was signed into law on Friday, and Congress has now passed over $700 billion of spending, aimed to support businesses struggling from the pandemic. That will help soften the blow.
The Labor Department reported an additional 4.4 million claims, with the 5-week total passing 26 million, so government help is needed. If you have a job right now, be thankful! And help out your community if you can. Not everyone is so lucky these days.
What to watch for next week?
We could all use a break from Coronavirus related news, but last week, the CDC outlined 3 phases on how to reopen the economy safely. That framework will likely be updated or adjusted depending on how the virus progresses. Hopefully, we can watch some live sports events at some point and can skip the Tiger King marathons. Big thank you to Swizz Beats and Timbaland, the latest #Verzuz battled has helped to get us through this time!
For the economy and markets, there will be several phases that need to pass before we get to a new normal. Investors need to step back and reflect on the unpredictability of it all.
A mere few months ago, the global economy looked unstoppable and financial markets were flying to the upside.
Today, things are immensely different. The economy is fragile, markets are volatile, and uncertainty about the future weighs on everyone.
How we can help?
At Freeman Capital, we pride ourselves in closing the wealth gap, helping to build generational wealth among individuals who need help getting there.
We partner with you so you can build your wealth and investing confidence. We are Registered Investment Advisors that work alongside Certified Financial Planners to help you plan for your future.
Reach out to us to have a conversation and see if we might be a good fit. No commitment needed. You don’t need to be rich – if you have $1, we can help you.
We are FreemanCapital and your wealth matters.