Our offices and the markets will be closed on Friday due to the Good Friday holiday.
Here are some highlights from this week that we thought might be of interest:
o Discussion continues on what the next federal stimulus package will look like
- Last Friday, the Paycheck Protection Program through the Small Business Administration began accepting applications and the demand was overwhelming. In response to the significant number of applications already submitted, Senate Majority Leader Mitch McConnell announced that the Senate will vote on a $250 billion expansion of the program, most likely next week.
- The House is also working on the next stimulus package, with a focus on small businesses, hospitals and health centers, state and local governments and families.
o Markets responded well this week to some good news, but we are still expecting to see volatility
- The markets were up this week on positive news coming out of New York State: the number of patients hospitalized appears to have plateaued.
- Discussions also began on how to open the economy again. New York is investing in private companies to bring rapid testing to scale, with the goal of opening the economy and allowing individuals to return safely to work.
- Currently, about 14% of S&P 500 companies are trading above their 50-day moving averages. In a typical bear market rally, it is customary for the metric to approach roughly 60%. This 60% level will be key in evaluating whether there is durability behind this current rally or if this is your typical bear market head-fake. 90% typically marks the all-clear for the market. For more information see the attached article.
o Planning Idea for the Week
- With interest rates reaching all-time lows we believe it is a good idea to take inventory of the current debt and interest rates that you have. This would include mortgages, lines of credit, car loans, student loan debt, credit cards, etc. We would be happy to discuss how this might help your cash flow in the short and long run by looking at options.
o Good News From Around the World
- Due to people driving less, many car insurers are announcing that they will refund a portion of their customer’s premiums.
- o Twitter co-founder Jack Dorsey Pledges $1 Billion to charity, starting with charitable causes that are focusing on relief efforts for the novel coronavirus.
- o Bill & Melinda Gates Foundation will spend billions of dollars to build factories to help to develop and deploy a vaccine for the novel coronavirus.
We hope that you have a nice long weekend and please do not hesitate to reach out with any questions at 907-677-8300.
The Planning Group of the Northwest