We have turned the corner

The Dow is up almost 1,700 points today as we come to the close of trading. This is a clear example of how stocks are a leading indicator, meaning that the stock market is always looking ahead. Although uncertainty remains, the market is anticipating the beginning of improvement for the economy. It will probably be a volatile ride back to economic stability, but things appear to be improving. We should see the peak of the negative impacts of the coronavirus this week or next, followed by steady improvement and a return to work for many workers. While not all businesses will return to full productivity, and some will fail, the negative economic impacts should be temporary, and the second half of 2020 should offer positive GDP growth. For those who sold stocks during the panic, if you need to generate a return on your assets, you should look for opportunities to get your money reinvested. We should have some pullbacks along the path to higher levels for the market, above 3,000 on the S&P 500, so buying the dips, if they occur, would help improve returns.


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