March 2020 – 3 in 3
FOUR PILLARS OF RECOVERY
We need to make sure they have safety and necessary supplies (testing kits, protective equipment, hospital beds, etc) to continue work.
Back Stopping Small Businesses
Small businesses and their employees need to stay afloat as they are a massive part of the American economy.
Availability of Credit
Make it easy for banks to lend and businesses to draw on their bank lines.
Liquidity in Markets
Fed announced quantitative easing where they can buy securities (treasuries and mortgage backed securities).
Proposed Stimulus Estimate
President Trump declared COVID 19 a national emergency under both the Stafford Act & National Emergencies Act
Empowers FEMA to directly assist state and local governments during “natural catastrophes” and coordinate the nation’s unified response. Allows the federal government to rapidly direct more resources at local levels needed to respond to the disaster.
National Emergencies Act
Authorizes the president to declare a “national emergency” whenever he or she decides it’s appropriate. The president is allowed to bypass Congress and reprogram funding toward whatever areas he deems fit
Credit spreads are the difference in yield between similar maturity but different credit quality bonds. When treasury markets are favored, credit spreads widen. Credit Spreads have spiked since the end of February and the primary catalyst is for the stock market and economy. Widening spreads will challenge indebted companies.
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March 2020 – 3 in 3 Weaver Consulting Group is a local, family owned, Registered Investment Advisory practice in Huntington Beach, California. We have been providing our expertise and sharing our experiences for the last 22 years. It is our priority to act in the best interest of each person that we work with. Therefore, the experience you have with our firm is individually tailored. We strive to include all aspects of your personal and financial goals when consulting.