Weekly Market Review: May 11, 2020

first_imgThe stock market is a “forward-looking” institution, pricing each day thousands of publicly traded securities based upon where buyers and sellers see the companies’ fortunes playing out on their profit-and-loss statements many months down the road. How else might one explain the results of last Friday 5/08/20? On a day when the U.S. government reported a stunning national jobless rate of 14.7% as of 4/30/20, up from a 50-year low of only 3.5% just two months earlier, domestic stocks continued a rally that began seven weeks ago. After finding itself down 30.4% YTD (total return) as of Monday 3/23/20, the S&P 500 has climbed back to just an 8.7% loss YTD (total return) as of the close of trading last week (source: BTN Research).Of the 124 million households in the United States as of 3/31 /20, 81 million ( 65%) are homeowners. Of the 81 million, 50 million have a mortgage on their primary residence. The housing market faces its next potential crisis this Friday 5/15/20 as 50 million monthly mortgage payments come due (source: Census Bureau).As of 5/04/20, 52% of the 3, 142 counties in the United States (1,630 counties) had not recorded a single COVID-19 death. At the other extreme, just 30 counties in the country, less than 1 % of all counties nationwide, have suffered 57% of the COVID-19 deaths (source: The COVID Tracking Project). Notable Numbers for the Week:DISMANTLED AND IN STORAGE – The number of operating oil rigs in the United States (both on land and offshore) as of last Friday 5/08/20 was 374, down 54% from 805 operating rigs as of 12/31 /19 and down 65%from 1,083 operating rigs as of 12/31 /18 (source: Baker Hughes).LESS NEEDED – 26% of 305 chief financial officers surveyed in late April 2020 anticipate their firms will “reduce their real estate footprint” when work life resumes some level of normalcy (source: PricewaterhouseCoopers).JUST HERE FOR THE DAY- 48% of hospital revenue in 2018 came from outpatient procedures (source: Deloitte Center for Health Solutions).HOW IRONIC – The U.S. economy fell 4.8% in the first quarter, i.e., quarter-over-quarter change expressed as an annualized total. 47% of the 4.8% decline was from the nation’s “health care” sector, partially due to the requirement that hospitals temporarily stop all non-emergency surgeries (source: Commerce Department).Mark R. Reimet, CFP®CERTIFIED FINANCIAL PLANNER™Jodie BoothFinancial Advisorlast_img

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