2020-06-09 00:00:00, Jeffrey Buchbinder, Financial Advisor Magazine
Content Categorization
/People & Society
/News
Word Count:
774
Words/Sentence:
25
Reading Time:
5.16 min
Reading Quality:
Adept
Readability:
13th to 15th
After gross domestic product (GDP) contracted by 5% during first quarter 2020 on an annualized basis, consensus expectations for the second quarter are calling for a mindboggling 32% contraction on an annualized basis [Figure 1].
The path of the economy over the rest of the year depends on whether COVID-19 infection rates continue to fall, facilitating more and faster re-openings and a return to some semblance of normal consumer behavior.
With higher unemployment than at any time since the Great Depression, and 22 million net jobs lost in March and April, the hit to consumers' spending power evident in recent economic data might have been significant.
As Goes The Virus, So Goes The Economy
The U.S. economy almost certainly entered a recession in March 2020 as a result of the lockdowns and business closures to contain the COVID-19 pandemic.
The strongest 50-day rally in the S&P 500 Index in over 70 years has sent a signal that the economic recovery is gaining steam and may look more like a "V" than a "U," a square root, checkmark or swoosh.
Keywords
Financial planner, Alternative investments, Advisor conference, Investment advisor, Financial planning, Financial advisor, ETFs, Investment news, Broker-dealer, Retirement planning, CFP, RIA
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