Following on from stimulus, the market is still looking for cues regarding containment. As more states across the nation issue stay-at-home orders, we still do not know how long people will be away from their places of employment, and their favorite shops & restaurants. Investment markets hate uncertainty--and this is a huge short-term question for the economy
Below please find some items I found for some mid-week perspective:
- The S&P 500 ended the first quarter down -19.60%, which was its worst quarter since the financial crisis
- We still won’t have a good gauge on what the magnitude of the economic impact will be until we get a handle on the duration of the social distancing policies.
- The 2nd quarter economic data will start to become clearer--No doubt it will be horrible, as markets have already priced in a lot of bad news.
Controlling Emotions in a Volatile Market -- Video
- While larger US Corporations will have access to major loans, the small business offering in the stimulus is also quite robust.
- The link provides guidance from the Dept. of Treasury for the loans available to keep people employed.
- When certain conditions are met, the loans can become extremely favorable (in some cases loans are converted to grants).
- You should seek the guidance of your small business banker or tax advisor
- Link to SBA (PPP resources)