In today\u2019s Steady Investor, we look at key\nfactors that we believe are currently impacting market volatility and what\ncould be next for the markets such as:<\/p>\n\n\n\n
Recession a Near Lock as PMIs Sink \u2013 <\/strong>the United States and Europe experienced sharp declines in business activity in March, as measured by manufacturing and services purchasing manager\u2019s 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 \u2013 or those responsible for ordering supplies and changing inventories and prices for supply chains \u2013 are anticipating large losses in output, spending, and investment.1<\/sup> <\/p>\n\n\n\n ___________________________________________________________________________<\/p>\n\n\n\n Are You Ready for the Recession?<\/a><\/strong><\/p>\n\n\n\n You may have noticed more talk lately about the chances of a\nrecession. Currently, the discussion is not if we will have a recession, but\nwhen. At some point, our economy will slip into a recession, in our view.<\/p>\n\n\n\n If you know a recession is coming\u2014but you don\u2019t know\nwhen\u2014what can you do?<\/em><\/p>\n\n\n\n In our view, the best thing to do is prepare: Know the signs\nof recession, its possible effects, and take some key steps to protect yourself\nand your family from potential financial damage.<\/p>\n\n\n\n If you have $500,000 or more to invest, get our free guide\ntoday – A Recession is Coming: 6 Insights to Know Now So You\u2019re Prepared.2<\/sup>\n<\/em><\/p>\n\n\n\n Download Your Free Guide Today!<\/a><\/strong><\/p>\n\n\n\n ___________________________________________________________________________<\/p>\n\n\n\n The U.S. Government Aims the Fiscal Cannon \u2013 <\/strong>The Federal Reserve has taken unprecedented action to provide the markets and businesses with virtually unlimited liquidity \u2013 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<\/sup><\/p>\n\n\n\n Some Industries and Companies are Thriving in the Current Environment \u2013 <\/strong>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 \u2013 some of it has shifted into other \u201cessential\u201d 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 \u2018recreational\u2019 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<\/sup> 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\u2019re using their services perhaps more than ever before. \u00a0<\/p>\n\n\n\n How to Prepare for a Recession?<\/strong> \u2013 <\/strong>While some industries may be thriving, the overall economy is\nheading toward a recession, in our view. The question now is when will it\nhappen? In our view, the best thing to do is prepare: Know the signs of\nrecession, its possible effects, and take some key steps to protect yourself\nand your family from potential financial damage.<\/p>\n\n\n\n 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\u2019re Prepared.<\/a>5 <\/a><\/sup><\/em><\/strong><\/p>\n\n\n\n You\u2019ll learn some of the most common indicators of\nrecession, and get our viewpoint on the most important moves you can make to\nweather a recession. Don\u2019t wait\u2014get this guide before the storm hits.<\/p>\n","protected":false},"excerpt":{"rendered":" As the downturn takes hold, some sectors are booming, and the government adds $2 trillion stimulus<\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-8575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=8575"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8575\/revisions"}],"predecessor-version":[{"id":10621,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8575\/revisions\/10621"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=8575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=8575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=8575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}