Fear Continues to Grip America

Not only do we have a pandemic to fear, America now fears its own people.  This added instability is holding consumers back from going out and enjoying a dinner or strolling through retail shops.  As many small businesses try to recover from weeks of lock down and hibernation, this seems to be the last thing business owners need.  For some, the destruction was the last straw.  With many now expected to permanently close their doors, this will add to the jobless count and push some into bankruptcy.  With 50 million Americans having have lost their jobs or taken a forced pay cut, this is terrible news for many hard working Americans.  Just when you thought things were getting better….

Although the current economic reality does not justify the continued stock market climb, many are now throwing in the towel on expectations that the market will fall in the months to come.  In fact, Goldman Sachs is rolling back their prediction for a steep sell off.  This news is helping to fuel the rally, which continues to build steam.  Given the Fed’s massive investments in both the stock and bond markets, it seems the system has figured out how to both print money and raise the national debt in ways that effectively take away any macro impact of a recession.  Of course, the recession will be felt by individuals and businesses. However, there will still be the same amount of money flowing through the system to make up for what is lost.

We will maintain a locking bias.