Today we provide you with 3 additional value added pieces as we navigate this
Corona-Virus.
As I type this after the close of the market on Tuesday, we just saw a huge relief rally based upon the hope that Congress will agree to some fiscal stimulus package. Just as we recommend not overreacting on the downside I would also caution that we don’t want to overreact to the upside and think that
everything is clear and the market will have a rapid recovery back to old highs.
The first link today is a summary of a call with the Chief Investment Officer of Franklin Templeton. I do think that the first signs of a longer term stabilization will come from the fixed income markets as they have also been extremely volatile. We will need to see spreads on various types of credit instruments stabilize and narrow versus Treasuries. This will give us more confidence that any rally we see in equities is sustainable.
The second link is to a one page summary of First Trust current thinking on the economic impact of the Corona-Virus and helps put that impact in historical context.
The final link today is a thought provoking opinion piece written by Brian Westbury on the Corona-Virus and his opinion of some of the economic implications we should be considering as we go through this crisis.
Thank you for reading and for the feedback we have received.
