We hope this continues to find you healthy and well during this historic time. Thanks for your willingness to check-in on these updates – we hope that you find them helpful.
If you would like to see the video of the most recent North Main Financial radio show where I discuss the current economic and financial climate due to Covid-19, you may find that here: https://www.facebook.com/watch/?v=1138374909881569
We are continuing to move through a massive economic adjustment due to Covid-19. Interestingly, it is close to a tale of two economies: those industries which have been hit very hard (airlines, hospitality, hotels, energy) and those industries which continue to thrive (technology, consumer staples). That dichotomy is one of the reasons that the markets have rebounded in the ways that they have. We also have the Federal Reserve laser-focused on keeping rates low and Congress signaling that there will be another round of financial relief legislation in late July/early August. If they occur, those movements will have continued large impacts (both positive and negative) and we’ll share our thoughts as that may happen.
The long-equity markets have rebounded significantly from their March 23rd lows but now are acting in what we sometimes call ‘trading ranges’: a lack of motivation in either direction. We are watching them closely, especially as companies move through the next round of quarterly earnings & making some attempt at forecasting.
States are beginning to re-open their economies and as anticipated, it is less than a smooth or easy process. We anticipate that this (fits-and-starts exercise) will continue through the year-end, especially as schools and colleges go through that in the fall.
We’re receiving a lot of questions about the upcoming Presidential election for the obvious reasons. Intentionally staying away from the hyper-politicized nature of it, we are seeing a lot of uncertainty in the short-run but a lot of very good possibilities in the long-run. As happens every cycle, the market will likely be unnaturally negative with one result and unnaturally positive with another result but that is a short-term phenomenon. That said – allocations and a flexible plan (as they always are) are key.
Thank you again for your trust and confidence in NMFG. We never take that lightly and I’m not sure that we can say ‘thank you’ too many times 😊. Please always feel free to reach out with your thoughts and questions at any time – we always enjoy hearing from you.
Joshua & The NMFG Team