In today’s Steady Investor, we look at key factors that we believe are currently impacting market volatility and what could be next for the markets such as:
Recession a Near Lock as PMIs Sink – the United States and Europe experienced sharp declines in business activity in March, as measured by manufacturing and services purchasing manager’s indices (PMIs). Output was severely slowed by global shutdowns across the world, with supply chains continuing to be compromised and the service sector burdened with canceled travel plans, events, conferences, shops, restaurants, and most consumer engagement with the economy. Similar readings emerged from Japan, the eurozone, and the U.K., which means that purchasing managers – or those responsible for ordering supplies and changing inventories and prices for supply chains – are anticipating large losses in output, spending, and investment.1
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Are You Ready for the Recession?
You may have noticed more talk lately about the chances of a recession. Currently, the discussion is not if we will have a recession, but when. At some point, our economy will slip into a recession, in our view.
If you know a recession is coming—but you don’t know when—what can you do?
In our view, the best thing to do is prepare: Know the signs of recession, its possible effects, and take some key steps to protect yourself and your family from potential financial damage.
If you have $500,000 or more to invest, get our free guide today – A Recession is Coming: 6 Insights to Know Now So You’re Prepared.2
Download Your Free Guide Today!
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The U.S. Government Aims the Fiscal Cannon – The Federal Reserve has taken unprecedented action to provide the markets and businesses with virtually unlimited liquidity – extraordinary monetary policy action. Now, the U.S. government is following up with extraordinary fiscal stimulus measures. Plans were released this week for some $2 trillion in new stimulus. Some highlights from the Senate bill include:3
Some Industries and Companies are Thriving in the Current Environment – A broad swath of the US and global economy is set to experience pain in the coming weeks and months as a result of shutdowns and halted economic activity. Job losses will almost certainly skyrocket as consumption and GDP plummets. But US household consumption has not necessarily gone to zero – some of it has shifted into other “essential” parts of the economy. Hotels, restaurants, airlines, and retailers are obviously feeling the pain. But other areas of the economy are feeling boom-times: grocers, pharmacies, food and beverage companies, gun and ammunition shops, and cannabis. Many companies operating in these sub-sectors are seeing sharp increases in spending, as consumers pick up necessities (and a few other ‘recreational’ items) to help cope. Companies like Walmart, Amazon, and CVS are among a few big-name companies looking to hire 500,000 Americans in the coming weeks. Then there are delivery services like Instacart and DoorDash that are expected to significantly increase their workforce (in the case of Instacart potentially two-fold). 4 Technology companies like Google, Facebook, and Netflix operate on the internet with no physical contact between consumers. And as many of us are now aware, we’re using their services perhaps more than ever before.
How to Prepare for a Recession? – While some industries may be thriving, the overall economy is heading toward a recession, in our view. The question now is when will it happen? In our view, the best thing to do is prepare: Know the signs of recession, its possible effects, and take some key steps to protect yourself and your family from potential financial damage.
If you have $500,000 or more to invest, get our free guide today – A Recession is Coming: 6 Insights to Know Now So You’re Prepared.5
You’ll learn some of the most common indicators of recession, and get our viewpoint on the most important moves you can make to weather a recession. Don’t wait—get this guide before the storm hits.
Disclosure