No deal yet? Should the dollar figure be $600, $200 or perhaps meet in the middle @ $400! I absolutely believe that anyone who has suffered a current Covid-19 related job-loss should continue to receive unemployment compensation until they are called back, or the economy truly opens and job openings are plentiful.
The amount, in my opinion. should be equal to one’s net take home pay, period! How exactly you do this is beyond my pay-grade, but that’s how I feel. The Markets however prefer the $600, or I think will feel good with $400. This additional compensation so far has found its way to purchase items from Amazon, Apple and many other “stay at home” stocks. Hey, we’re bored, & we love to spend!
Last week we heard earnings from Amazon, Apple and Facebook that blew the cover off the baseball. No current signs of a change!
In addition to unemployment funds, agreement for other parts of the stimulus appears elusive, for now. Should we bail out municipalities who are suffering? Some feel many states have been mismanaged, so why should they receive funds? I agree that our states have many fiscal issues that need attention however I’m guessing that without Covid-19, their solvency issues would not have been an immediate issue. Not sure where I stand on this one! Bond defaults are never good in the short-term…
Let’s say you’re a business owner who wants to reopen, and you fully intend to follow 100% of protocol as recommended by our government. How do you feel about being able to be sued if someone who comes to your business contracts Covid-19? How about grammar schools, high schools and colleges? Should they be liable? Tough questions without an exact science to answer!
I believe this stalemate will be over soon, as markets are continuing to move higher. Perhaps we’ll have a deal prior to Friday’s monthly Job Report. I don’t think either party wants to be on the wrong side of whatever is announced.
This Friday, we’ll hear the report on employment for the month of July. The consensus is that a significant number of jobs have come back, and the rate of unemployment will drop from 11.1% to around 10%. All in favor of getting people safely back to work!!
Our S&P 500 is positive for 2020 which is an amazing feat, especially after a jaw dropping minus 32% GDP contraction in the 2nd quarter. Investors continue to pile into technology, technology-like, and “stay at home” stocks pushing the indexes north. 1/3 of the stocks in the S&P 500 are down close to 20% for the year. The average “Large-Value” US stock fund is down approximately 19.95%, and the average “Small-Value” US stock fund is down over 21%.
Last week the S&P rose 1.75%, the Dow dropped a mere (-.15%), the Nasdaq Composite led the way rising 3.70%. Over the pond, Developed stocks fell (-2.12%) with Emerging Market stocks up 1.77%.
The current range of interest rates on our 10 Year US Treasury is range bound, down. Last week the yield shrank further to .54%. Zero is not too far away…. I hope not!
3 months from today! Much will be said, seen & heard. I’m forced to pay attention as I’m very interested in how policy will shape the short, intermediate, and long-term path of our nation. My core values have not and will not change either way. I believe the Government’s job is to keep us safe, provide opportunities for those who desire prosperity, as well as treat all workers fairly. I certainly understand the term “fairly” is what everyone continues to debate.
We are targeting to resume our educational workshop series in October. Tax-planning Through Retirement, Social Security, Medicare, and overall Retirement Income Planning are on the docket. I so miss hosting educational workshops that provide quality information to guide people toward sound decision-making!! Stay tuned for more details and visit our Workshops page for the latest info!