News & Economic Updates
July 2020
Best word to describe recovery: 'Healthy'
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After a stock market collapse like the one we saw beginning in February, it’s usually a long, slow slog back to the top. So you could say it has been a surprise to see the rebound. How surprising? It turns out the Dow Jones Industrial Average had its best quarter (ending June 30) since 1987, with an 18% gain. See this month’s GRAnderson Wealth Economic Report for details. Click here to see the results specific to June (DJIA up 1.69%). There is still some work to do (the Dow remained 9% down for the year at last check), and it’s still possible that we could see another big dip if the coronavirus pandemic heats up again, but most of the news has been favorable. By the way, if most of your holdings are in the NASDAQ exchange, your news is even better, as that composite index reached an all-time high in June (breaking the 10,000 mark for the first time). Click here for more numbers.
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Federal Reserve remain active in efforts to aid economy
Another interesting development in June was the Federal Reserve’s announcement that it will keep its funds rate near zero, with expectation that the rate will remain there into 2022. The Fed has also committed to monthly purchases of Treasure bonds and mortgage-backed securities. The agency is using all its tools to help ease the impact of the recession, the dramatic fall of the nation’s gross domestic product, and the overall impact of the war on coronavirus. Click here to see more.
What we're watching at GRAnderson Wealth
Perhaps the one thing that the stock markets and the economy could use more than anything is a cure for COVID-19, or at least the promise of a cure. We’re watching stories like this one about an antibody drug in Phase 3 of development. Some good news on this front would boost the stock market more dramatically than anything else. We are also watching the course of civil unrest that has swept the country, in hopes that the end result is a harmonious environment.
Government keeps loosening retirement restrictions
As this COVID-19 pandemic drags on, it’s probably a good idea to make a mental note to continually check on temporary changes to investment and retirement laws. The latest change that could benefit you is the one regarding required minimum distributions (RMDs) from your IRA, 401(k) or other retirement account.

At the end of last month, the IRS announced it will allow people to “undo” any RMDs that they took in January. That is, you can put the money back into your account without any penalty. Previously, the IRS had said any RMDs after Feb. 1 could be “rolled back.” And now you have until Aug. 31` to roll it back. The changes are designed to help people cope with the negative economic impact of the pandemic. Questions? Send them to [email protected]  or call 303-228-3160.