Sharkey, Howes & Javer

Inside the Economy: The State of the Economy and COVID-19

This week on “Inside the Economy”, we continue to monitor economic data as it continues to improve. Fiscal stimulus comes in many forms, like the direct payments or federal unemployment benefits, and has totaled more than 12% of GDP. What will the next bill look like from Congress and how much more money will be added to the national debt? Gold has had a strong rally as buyers speculate on future inflation and the value of the dollar. What’s to come over the next several months? Tune in to find out more! 

Key Takeaways:

• Economic data continues to improve with retail sales, production increases, and housing data. 
• Stock market indices continue their recovery lead by big tech as earnings show better than expected. 
• Gold is rallying and another stimulus bill from Congress is coming soon.

Inside the Economy: The Pandemic Job Market and its Impact

Today on “Inside the Economy”, we examine the impact that COVID-19 has had on the U.S. job market. As a society, we have witnessed numerous recessions over the last 75 years but none quite like this. How will the uncertainty regarding Coronavirus effect unemployment over the long-term? As Americans wait to see what is next, many are sitting on more cash than usual. How is this impacting spending and has it affected stock market returns? Tune in to find out!

Key Takeaways: 

• COVID-19 spurred a dramatic change in unemployment numbers, different from previous recessions
• Although unemployment numbers remain high, we are starting to see an increase in hiring and job openings again
• We have seen an increase in mortgage delinquency but it is nowhere near 2008-09
• This year has been a volatile year for all asset classes but gold and 10-year Treasuries remain on top
• Corporate debt and money supply continue to climb

Inside the Economy: Consumer Spending and COVID 19

This week on “Inside the Economy”, we refocus on the biggest driver of the economy, consumer spending. Retail sales were up in May, auto sales are climbing back and sales of new homes returned to a level of normalcy. An upward trend in consumer spending is a sign of economic relief, however states and local governments may still have challenges ahead. How has COVID-19 affected state revenues and what is the implication for municipal bonds? Tune in to find out!

Key Takeaways:

• Consumer Spending is on an upward trajectory and May data showed a big uptick in retail, auto and new home sales. 
• Forbearances have mostly paused, and the housing market is returning to normal even though most states still are not allowing physical showings. 
• State and Local governments have seen a big drop in revenue. This may point to more aid from the federal government. 

Inside the Economy: Catching Up with COVID-19

This week on “Inside the Economy”, Americans have spent the last few months saving more and spending less. As spending begins to resuscitate, where are we seeing inflation in the system? We are starting to see an increase in travelers making their way through TSA but are nowhere near the 2.5 million flyers per day we saw during summer 2019. How are the airlines coping with the slower summer days? Through a volatile market, who are the current winners and losers? Tune in to find out!

Key Takeaways:

• Initial jobless claims are decreasing in Colorado while some are going back to work— others are still hesitant to spend their hard-earned money
• The demand for recreation services and outdoor equipment has increased prices 
• Home sales are picking back up as Americans are staying local
• Airlines are leaning on CARES Act Support to navigate through hard times
• The U.S. dollar has been losing strength in conjunction with oil prices and low interest rates

Inside the Economy: The New Normal and COVID-19

This week on Inside the Economy, we address the beginning of the end of a great social experiment. Human behaviors have changed and will continue to evolve as businesses and consumers move forward. The S&P 500 continues to separate itself from the grim economic data with positive performance. Why is there such a disconnect? One catalyst may be how quickly the Federal Reserve and Congress acted to maintain liquidity in capital markets. As we adjust to the impact of COVID-19, the markets may start focusing more on other potential volatile events, like what is going on in Hong Kong and an upcoming presidential election. Tune in to hear more!

Inside the Economy: Spending Patterns and Coronavirus

Today on “Inside the Economy with SH&J”, we take a look at where people are investing their hard-earned money. Americans are spending less on their credit cards but are investing in real estate and home improvement projects. While some are purchasing new homes, others are struggling to make their mortgage payments. Will the missed payments have a long-term economic impact? The stock market has made a slow but steady recovery, have we seen the worst of it or is there more volatility to come? Amazon has proven it can weather the storm, but how are other retailers holding up?

Inside the Economy: Bleak Economic Data and COVID-19

This week on Inside the Economy, we begin to see the economic impact of COVID-19 in the numbers. No surprise, unemployment claims have surged. The next question we need to address is how long will people stay unemployed? The first quarter GDP readings contracted -4.8%, the most since 2008.  More than likely, second quarter GDP will decline further, but the U.S. is doing relatively well compared to other countries economic decline. With earnings season wrapping up, health care, consumer staples and technology reported better than expected while other sectors struggled. Tune in to hear more!

Inside the Economy: COVID-19 and the Economic Interruption

This week on Inside the Economy, we continue to talk about the impact COVID-19 is having on the global economy. The U.S. government has interrupted the momentum of the economy asking American people to stay home. The U.S. has already injected liquidity of approximately 11% of GDP into the system. What will the final cost be? As some states gear up to start reopening certain parts of the economy, one thing is certain, there will be clear winners and losers. Tune in to hear more! 

Inside the Economy: The COVID-19 Impact and Fed Reaction

This week on Inside the Economy, we dig into the economic implications from the Coronavirus. Unemployment numbers have jumped up from their all-time low—how has the virus impacted the hiring process and what industries are seeing the biggest effects? We have seen highs and lows in the stock market this year. What is to come as we head into first quarter earnings season? We break down the CARES Act and how it reflects what the U.S. has learned from 2008. Tune in for this and more!

Inside the Economy with SH&J: Into the Unknown with COVID-19

On this week’s Inside the Economy, we discuss the sharp contraction in the markets with the S&P 500 dropping more than 30% since its all-time high on February 19th. Although it looks and feels like a recession, what economic indicators signify a true recession and when will we learn if we are living through one? How has social distancing impacted the economy and what is the Federal Reserve and government implementing in order to help ease financial stress? Find out on today’s Inside the Economy.