We continue to share a collection of charts that we hope you find relevant in understanding the current investment climate.
This month’s Chartbook explores the extreme measures our government took to stabilize the economy through the COVID-19 pandemic lockdown. Massive amounts of debt were issued to fund fiscal programs that blunted what otherwise would have been a severe economic slowdown. Now, with revolutionary medical remedies hopefully bringing us back to near normalcy, the question is: Can and when will our economy function without the artificial stimulus from debt financed government stimuli?
This month’s Chartbook shows the following:
- Our government stepped in with immense aid packages due to the COVID-19 pandemic lockdown. This spending resulted in enormous Federal Deficits
- While COVID-19 continues to haunt us, miraculous nationwide medical intervention is stabilizing the death count.
- After an initial collapse in employment, jobs have recovered to healthy levels.
The question now is how and when does our economy moderate itself off of government support? And how will the bond and stock markets react? Surely, borrowing the equivalent of 10% or more of total GDP cannot continue. Our Congress has a wish list of things that need to be done. But how much is possible?
Please see the Blog-Posts section on our webpage for further commentary at the link below: https://www.wealthstrategiesteam.com/blog-posts/
As always, know what you own, do not overinvest, and stick with quality.
Cliff Jarvis