The Lowry Letter®

Week of 6/11/2020

Thank you to everyone who responded to our brief survey. Here is the link again in case you were unable to participate:

Webinar Availability

Responses have been quite varied, but we will do our best to make them accessible to as many as possible.

The improvement in the market continues to indicate great optimism for economic recovery. We remain cautious given continued uncertainty but are pleased by the upswing. Read more about May’s results in the monthly market recap here .

We learned: that 10 percent of the jobs (re)gained in the month of May were in the dental profession. The closure of dental practices due to Covid-19 was an unprecedented challenge for the profession and we are glad for our many dental clients that restrictions have eased.

We think: our inability to visit interesting places and things doesn’t mean we can’t learn about them. The “Old Man of the Lake” is a 30-foot tall tree stump that has been floating vertically in Oregon’s Crater Lake since 1896.

We read: about how measuring virus levels in municipal sewage can help predict Covid cases with about one week’s notice (Yale study referenced here). It echoes earlier research showing that testing wastewater could become the new way for health professionals to know if a new drug crisis is emerging.

We've been: concerned about internet scams for a long time. Among the most well-know are the “Nigerian Prince” e-mails. We learned that they are intentionally filled with grammatical errors and typos to filter out all but the most gullible recipients. This strategy minimizes false positives and self-selects for those individuals most susceptible to being defrauded.

We recommend: that any business owners who received or have applied for funds under the Paycheck Protection Program review the changes signed into law last week by the president. They provide greater flexibility for the use of funds and for loan forgiveness. The vast majority of these loans is for less than $150,000

Q: I get that the market is responding to the economy reopening. Are there any problems that may slow things down ?

A: One thing to keep an eye on are retail rents. According to reports , more than 40% of retail rents were not paid in May. Even though professional services like dentistry are nearing normal operations, retail remains limited in many areas. It is also unclear how consumer habits have evolved through the pandemic and how the sector will recover. Widespread real estate defaults could lead to broader economic problems. It reminds us that complete economic recovery will take time and be uneven. It will also not correlate directly to improvement in the stock market .

Advisory Services offered through Lowry Financial Advisors, Inc., a Registered Investment Adviser. Securities and additional advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Advisory services offered through Lowry Financial Advisors, Inc, are separate and unrelated to Commonwealth. Lowry Financial Advisors, Inc. is located at 12921 SW 1st Rd, Suite 215, Tioga, FL 32669. 352-333-7990

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