Equities have been on the mend recently after stocks moved lower throughout most of last week on worries that the emerging economic reopening might accelerate the spread of COVID-19. Comments by Fed Chair Powell added to the downside pressure when he expressed concern about the path ahead for the U.S. economy.
The stock market has since managed to find some firmer footing as investors react to favorable retail earnings reports, positive signals on home purchasing and business reopenings, an unexpected rebound in consumer sentiment, and promising news among COVID-19 vaccine developers.
Although equities have performed well recently, we believe investor optimism has been too high. While the amount of stimulus being pumped into the economy is enormous, it will take time to work its way into the real economy, and there will be bumps along the way. A market that has some up weeks and some down weeks is to be expected until news regarding the virus and economic fronts sorts itself out.
As we head into a holiday weekend, I'd like to acknowledge and thank those in our ranks who have served this great country. While Memorial Day is the official start of summer and a well-earned extended weekend, it also marks a time for us to remember those who have made the ultimate sacrifice. Here's to those who have fought and died for the freedoms we enjoy every day.
Your well-being is of foremost importance. We will continue to monitor the economic and market implications of the COVID-19 pandemic and make accessible updates as soon as they are available.
Remember, I am here to help you and your family answer any questions that you may have. As always, feel free to contact me directly at 330-908-1087 or you can e-mail me as well.
Hope you have a nice holiday weekend! Stay healthy, stay safe and stay positive!