This month Jason Weaver covers the greatest stimulus of all time, physical vs digital economy and what is priced in to the market.
GREATEST STIMULUS OF ALL TIME
The Fed’s Actions to Date:
They have cut interest rates to zero, established quantitative easing unlimited, bought corporate bonds and bought state & local bonds.
Government Actions to Date:
CARES Act
They have made cash payments to individuals, expanded unemployment benefits, no required minimum distributions, PPP loans, loan forbearance and healthcare relief.
The government is currently discussing the HEROES Act, which would be similar to the CARES act.
PHYSICAL VS. DIGITAL ECONOMY
The Coronavirus Pandemic has accelerated many trends. The use of technology in our day to day lives has been the most profound, especially in a Covid world. D.C. is discussing an infrastructure bill that includes building out US digital infrastructure (5g, Cyber Security, etc)
WHAT’S PRICED IN THE MARKET
The stock market has recovered +40% from it’s March 2020 lows.
Factors affecting markets for remainder of year are geopolitics, the U.S. Election, Globalization/De-globalization and the potential of a second wave of Covid-19.
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