Time to Read: 3 Minutes
The economic fallout from COVID-19 broke several records, including the fastest recession in the history of the US*. In our most recent webinar titled, “Is The Recession Over?”, we take a look at the key indicators we are watching to determine if the recession has ended. Here are the key takeaways:
- Fastest recession in history triggered fastest market.*
- Recession will end after a trough in activity. That may be occurring.
- Longer term recovery shape still unknown and depends on business.
- Fed, Central banks and Governments are providing massive stimulus.
- Long term returns on traditional fixed income likely muted from here.
- Indicators turning bullish as market advance broadened out.
- Sentiment elevated after rapid market recovery.
- It’s still all about COVID-19.
Currently we remain marketweight stocks, overweight bonds, and underweight cash. We are continuing to look for opportunities to add risk assets at appropriate times and believe it is important for clients to maintain an appropriate amount of liquidity for the next couple years. Please contact BWM Financial if you would like to discuss your specific situation in more detail.
*Ned Davis Research charts S0202D/IE90. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence.
