April 19, 2020
Wall Street Solutions with Main Street Values!
Market Update – Stocks continue rally, await reopening of U.S. economy
Dear Great Lakes Wealth Clients & Friends,
Each day brings more news – some of it encouraging, some of it not – about our efforts to curtail the spread of COVID-19 and reopen the U.S. economy. Lawmakers at the federal, state and local levels are trying to find the appropriate time to reopen the economy, as well as ways to support people whose lives and livelihoods have been affected by the coronavirus pandemic.
Great Lakes Wealth understands what an unsettling time this is, so I want to share with our valued clients the latest insights on the economy and the financial markets:
- While it may seem odd, the S&P 500 index just experienced its strongest 16-day period since 1938 as investors respond to unprecedented monetary and fiscal stimulus and discussions of reopening the economy.
- Unemployment claims over the four-week period ending April 11 indicate much of the job creation since the 2008 financial crisis has been erased. Jobless claims have now reached 22+ million, and still rising.
- Investors continue to commit cash toward “risk-off” assets in the fixed income market, such as Treasuries.
- While the recent market bounce has been impressive, uncertainty remains. There likely will be plenty of potential market-moving information to come in the days and weeks ahead. Our base case is that the bottom is in. However, we continue to take a cautious approach in the near-term and are using volatility to be tactical.
As we all continue to gain our bearings, we’ll also keep you updated with relevant and, hopefully, useful information. On behalf of your entire Great Lakes Wealth team, thank you for your continued trust in us.
If you’re not yet a client and are interested in becoming one, please give us a call at 248.378.1200 or send me an email at email@example.com.
Dewey D. Steffen
CEO/Chief Investment Officer