What’s going on in the world…
Market opens sharply lower, erasing yesterday’s gains. Reality seems to be setting back in with some of the worst economic data being reported in decades, or ever. Retail sales for March saw its worst decline in history as most stores were shut down. JC Penny is considering bankruptcy. The bad data is rolling out as the White House keeps pushing to open the Economy back up. President Trump says he could start speaking with state governors as early as Thursday about reopening plans. The governors will be in charge of when and how to open, but FEMA and the CDC have reportedly developed guidelines on a safe, phased approach. Trump says that 29 states are in “good shape” regarding the coronavirus and could reopen earlier than May 1. Gavin Newsom made it clear that despite the early response and the bending of the curve, California is not going to open in April. In fact, the May 3 soft target will likely get pushed. Mass testing will be required. Mass testing is not yet available. President Trump announced his administration is temporarily halting all WHO funding. After a massive move higher, stocks are retreating this morning. It’s going to take a lot of time and effort to recover sustainably. The rally was too quick. It’s not that easy. Expect more volatility ahead. Hang on tight. Fear is going to return.
Have a great morning,
Mike Frazier
