By: Matthew Theal, CFP® & Joshua Winterswyk, CFP®
During these fearful times, we will be starting a new series publishing every Friday afternoon recapping what we are reading and the content we have produced. We hope you enjoy!
What another wild week for the country. The S&P 500 had a great week returning 9%! Congress also passed a historic stimulus bill that will see money flow to individuals, small business and large corporations.
In more depressing news, the U.S. now has the most COVID-19 cases in the world, surpassing China and Italy. That said, our country has also passed both in testing capabilities. In worse news, the cracks in the U.S. economy are appearing as initial jobless claims hit an all-time record with over 3.2 million people filing for unemployment.
If you’re looking for something fun to watch this weekend, my wife and her team worked very hard on Uncorked, a Netflix film about a wine-loving son who dreams of becoming a sommelier and a father who wants him to just take over the family business. Here is is a trailer.
Below is the best of what we read this week.
Best From the Web
A quick read from the New York Times discussing who will get a stimulus check. Below is a quote from the piece.
“Single adults with Social Security numbers who are United States residents and have an adjusted gross income of $75,000 or less would get the full amount. Married couples with no children earning $150,000 or less would receive a total of $2,400. And taxpayers filing as head of household would get the full payment if they earned $112,500 or less.
Above those income figures, the payment decreases until it stops altogether for single people earning $99,000 or married people who have no children and earn $198,000. According to the Senate Finance Committee, a family with two children would no longer be eligible for any payments if its income surpassed $218,000.”
China has restarted its factories but there’s a massive problem: nobody is ordering anything. In fact, now that factories in China have cleared their backlogged orders, they are having to layoff workers because there is little demand coming from the U.S. and Europe. I believe we will see a similar fate here in the U.S., this economic recovery will not be quick.
Apple was already planning on moving to manufacture away from China. But now, because of COVID-19, they are expediting the process. Apple component manufactures are working on setting up production facilities in Vietnam, India, and Mexico.
I believe one of the huge trends we will see from COVID-19 is corporations are going to move away from China. Hopefully bringing back manufacturing to the U.S. and opening new facilities in Mexico. To me, it makes more sense to build up the North American ecosystem and create wealth here, than doing it in Asia.
Great article by Nate Silver. He looks at the data and draws the conclusion that yes, blue states have had more COVID-19 cases but those same states have also been testing more aggressively. To me, it makes sense that coastal states were hit harder first, that’s where the majority of international travel is done from. He points out that states like Georgia, Louisiana, and Michigan are struggling to contain the virus and could see hospital capacity issues worse than New York.
I love American Capitalism! A fun read here about Whiskey distillers making hand sanitizer. The same things is happening in the Ventilator industry and GM is converting its factory to produce Ventaliltors to help hospitals battle COVD-19.