Broker Check

Weekly Market Update

January 6, 2020

A Review of the Weekly Market Update

July 13, 2020

Congress is on recess for another week, returning to Washington next Monday 7/20/20. Lawmakers have likely heard from their anxious constituents, many of whom are among the 17.8 million unemployed Americans as of 6/30/20. There is Congressional support for what would be the third round of “Paycheck Protection Program” (PPP) loans for small businesses, on top of the $659 billion already allocated to be loaned at 1% for two years. Policymakers are also thinking “out-of-the box,” considering other plans to stimulate consumer spending as it relates to travel, vacations and dining out (source: Congress).

Millions of Americans are on the move because of the COVID-19 pandemic, and not just because of job losses. For some, being quarantined in a big-city apartment has pushed them to move back to their home state to be closer to aging parents. For others, the “work-from-home” requirement has caused employees to realize that as long as they have an internet connection, they don’t have to live in expensive major cities on either coast. Remarkably, home purchase applications for the week ending 7/03/20 were +33% higher than the same period a year earlier (source: Mortgage Bankers Association).

In late April 2020, the Congressional Budget Office forecasted a budget deficit for fiscal year 2020 of $3.7 trillion or 18.1% of our $20.4 trillion economy. The “deficit dollar amount” record in the U.S.A. is $1.41 trillion from fiscal year 2009. The “deficit as a percentage of GDP” record in the U.S.A. is 29.6% from fiscal year 1943 (source:
CBO).

Notable Numbers for the Week:

  1. TAKE IT AND SPEND IT - The CARES Act authorized non-taxable distributions of $1,200 per individual and $500 per child (under the age of 17). 159 million electronic payments and checks totaling $267 billion were paid to income-eligible Americans (source: CARES Act).

  2. DEATHS - The first American death from the COVID-19 pandemic occurred on 2/06/20. As of 9am ET on 7/06/20, i.e., five months later, 130,937 Americans had died from the pandemic. 93% of the American death total has occurred in the last three months, i.e., since 4/06/20 (source: NBC News, Meet the Press: First Read).

  3. JUST IN CASE - 45% of Americans surveyed in May 2020 have living wills in place. Living wills document an individual’s “end of life” medical care wishes in case he/she loses the ability to communicate (source: Gallup Poll).
  4. HOW LONG? - 37% of 1,000 American voters interviewed during the last week of June 2020 anticipate that the U.S. economy will “fully recover” within a year from now, i.e., 63% of those interviewed believe it will take at least another year for the U.S. economy to come all the way back (source: Financial Times-Peter G. Peterson Foundation).


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