In today\u2019s Steady\nInvestor, we look at key factors that we believe are currently impacting the\nmarket and specifically evaluate the potential stimulus spending ideas\nand plans in the U.S. and Europe, such\nas:<\/p>\n\n\n\n
Debating the Next\nRound of Economic Stimulus \u2013 <\/strong>Congress has a storied recent history of\nbutting heads when it comes to agreeing on anything.\n<\/em>But when it comes to the U.S. economy, virtually everyone is in agreement\nthat more stimulus is needed. The trillion-dollar question is, what will that\nstimulus be? Though the Trump Administration has been pushing for a payroll tax\ncut, it appears as of this writing that the tax cut option is off the table for\nboth Republicans and Democrats. Republicans have established their stimulus\npriorities: they want legal protections for businesses to reopen, billions to\nhelp reopen schools, possibly another round of stimulus checks, removing the\nextra $600 a week in unemployment benefits, and providing no new funding for\ncities and states. Democrats have said that no funding for cities and states\nwas a non-starter, and they also want to extend the extra $600 a week in\nunemployment benefits \u2013 two areas of disagreement with Republicans. 1<\/sup>\nWe expect more debate and for the disagreements over stimulus to become a tense\nissue in the coming days, but it appears at this stage that more stimulus is a\nforegone conclusion, and it may top $1 trillion. The equity markets may have\nalready priced-in some additional stimulus, so any positive or negative\nsurprise on the size of the bill may impact markets in kind. <\/p>\n\n\n\n ________________________________________________________________________<\/p>\n\n\n\n Download Our Dean\u2019s List of Investment Strategies!<\/a><\/strong> Meanwhile,\nat the Federal Reserve\u2026 <\/strong>There are essentially two levers that\nthe U.S. government can pull to release stimulus and liquidity into the economy\nand capital markets. \u2018Fiscal\u2019 stimulus is described above and is controlled by\nCongress. \u2018Monetary\u2019 stimulus happens independent of Congress and the Executive\nBranch and is controlled by the Federal Reserve. As Congress debates the next\nround of stimulus, Fed officials are set to convene at the end of July to\ndiscuss plans for additional monetary accommodation. All signs point to the Fed\nsimply continuing existing facilities through September, with bond purchases,\ncorporate bond purchases, and backstopping loans all part of the current\napproach. On the table for discussion at the late July meeting are how long to\nkeep interest rates anchored to the zero bound, whether to change the duration\nof bonds they purchase (move to the longer end of the curve), and\/or how to\nalter rate setting policy going forward.4<\/sup> <\/p>\n\n\n\n And Finally, to the\nSpending in Europe \u2013 <\/strong>It has been a week filled with stimulus spending ideas\nand plans, with Europe perhaps \u2018taking the cake\u2019 on making headlines. European\nUnion leaders agreed on a $2 trillion spending package, which included the\nfirst-of-its-kind issuance of EU bonds (in the amount of $860 billion). In the\nUnited States, the U.S. Treasury issues Treasury bonds, which are seen as debt\nobligations of the federal government, and thus the nation and all of its\nstates. Before this week, Europe had never taken the step of issuing an EU bond\nthat was debt of the entire bloc of countries, largely because of resistance\nfrom larger and wealthier members like Germany. This bond issuance should be\nviewed as nothing less than a major breakthrough for the fiscal union of the\nEU, which many are calling Europe\u2019s \u201cHamilton\u201d moment \u2013 in reference to\nAlexander Hamilton\u2019s historic move to have the United States absorb the debts\nof U.S. states.5<\/sup> Now, the European Central Bank can purchase EU\nbonds with newly minted money, just as the Federal Reserve does, basically\neliminating the risk of default. <\/p>\n\n\n\n There is no way to know\nexactly how this pandemic will continue to impact markets and economies around\nthe world, but finding the right investment strategy can make a huge difference\nwhen managing the highs and lows of the market. To help you learn more about\nstrategies that cater to different investment objectives, we have created our\nDean\u2019s List of Investment Strategies.6<\/sup> Stalemate in Congress over next package, Fed likely to stand pat, EU issues bonds for first time ever<\/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-8761","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\/8761","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=8761"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8761\/revisions"}],"predecessor-version":[{"id":10569,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8761\/revisions\/10569"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=8761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=8761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=8761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\u00a0
You can\u2019t predict when Congress will decide upon the next stimulus package or how the Coronavirus pandemic will continue to affect and shape the economy. But the right investment strategy can make a huge difference in preparing your long-term investments for success and helping you navigate these challenging and unprecedented times.
\u00a0
To help you learn more about strategies that cater to different investment objectives, we have created our Dean\u2019s List of Investment Strategies.\u00a0Our Dean\u2019s List describes five of our investment strategies that are ranked in the top of their respective classes by Morningstar<\/strong>\u00a0(as of 6\/30\/20).2<\/sup>
\u00a0
If you have $500,000 or more to invest and want to learn about five of our top strategies, click on the link below.
\u00a0
Learn More About Our Top-Ranked Strategies!<\/a>3<\/a><\/sup><\/strong>
________________________________________________________________________<\/p>\n\n\n\n
\n
\nOur Dean\u2019s\nList describes five of our investment strategies that are ranked in the top of\ntheir respective classes, according to Morningstar (as of 6\/30\/20).7<\/sup> If\nyou have $500,000 or more to invest and want to learn more about these strategies,\nclick on the link below to see how they could potentially benefit you.<\/p>\n","protected":false},"excerpt":{"rendered":"