Saturday, July 25, 2020

Will Economic Disaster be Avoided?

Investors in the stock market seem to think so. The Fed is trying to do so.   Congress is trying to make it so.

Still I'm not so sure.   The depth of the recession is being mitigated by the Stimulus package which included loans/grants to businesses, stimulus payments and $600/week bonus unemployment payments.  Stimulus payments are done, bonus unemployment ended this week, and loans/grants will reduced impatct until October 1.    Many small businesses are also closing for good.   Lots of economic cliffs.   

In addition, the pandemic is getting worse in many states, and overall, in the U.S.

Although we've been trickling in a small amount of funds into stocks that will thrive in a COVID-19 environment, I'm still concerned that the bleak economic scenario will eventually prevail and bring down the stock market again.

But then again, the Fed, Congress and/or the Trump administration may deliver a miracle, avoiding a deep recession and driving the stock market to new highs.

For more on Reflections and Musings, check back Saturdays for a new segment.

This is not financial, economic, nor investment advice. Please consult a professional advisor.

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