The Federal Reserve has taken unprecedented actions to save the economy during the coronavirus crisis. Below is a timeline of the major actions taken in the past 6 weeks. On 3/26, the Government passed a $ 2 trillion Coronavirus response bill intended to speed relief across the American economy known as the CARES Act. There are seven main groups that would see the widest-reaching impacts: individuals, small businesses, big corporations, hospitals and public health, federal safety net, state and local governments, and education.
Four Pillars of Recovery: Medical Professionals. 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.
This month, Jason Weaver discusses the pandemic risks, the presidential cycle and secular trends. Pandemic risks are large-scale outbreaks of infectious disease that can greatly increase morbidity and mortality over a wide geographic area. They can cause significant economic, social, and political disruption.
The new Setting Every Community Up for Retirement Enhancement (SECURE) Act might make it easier for small business owners to offer retirement plans. For many people, their work is the main place to find retirement savings tools and access retirement plans. The SECURE Act has been one of the largest overhauls of the United States retirement system in many years. The new legislation might make it easier for small business owners financial incentives to offer employees a plan.
Due to life expectancies increasing, some are choosing to continue to work longer. These two changes brought by the SECURE Act could be beneficial to those people. The Setting Every Community Up for Retirement Enhancement (SECURE) Act has been one of the largest overhauls of the retirement system in the U.S. in decades. Before the SECURE Act, savers were not allowed to make contributions to their Traditional IRA once they turned 70 ½. For those who retired before 70 ½, this rule might not have been as restrictive because they were no longer earning income.
The Secure Every Community Up for Retirement Enhancement (SECURE) Act was passed in December 2019. It includes reforms to increase access to plans in the workplace and expand retirement savings. This legislation includes changes that can affect defined contribution plans, defined benefit plans, individual retirement accounts and 529 plans. The Secure Act went in to effect on January 1, 2020. It changed the Required Minimum Distribution (RMD) requirements for inherited accounts and increased the age that you are required to start taking your RMD.
This month, Jason Weaver discusses the election year, geopolitical risks and real estate. During an election year, the stock market typically rises no matter which party is in office.
This month, Jason Weaver discusses market sentiment, valuation measures and international valuations. Stock market returns are highly correlated to corporate earnings. However, high profits do not necessarily mean a high stock price. And big losses do not always lead to a low stock price. The stock market can outpace earnings if it expects future earnings to grow.