I’m pleased to report that even on a shortened week, we had the best week in the US stock markets since 1974, as the major indices were up about 12%. In fact, small caps had a HUGE week, gaining almost 19%, and that is due in part to the stimulus package that assisted many smaller businesses. Thanks to last week’s rally, we have recovered just shy of half of the losses incurred since the peak on February 19. Similarly, bonds have also recovered a little less than half of their losses as well. We certainly feel a whole lot better now than 3 or 4 weeks ago when we had no idea the extent or duration of the impact of COVID-19.
I don’t think we are out of the woods yet, as many of the unemployed workers have not yet returned to work. Further, it is unclear as to when the federal or state governments will allow workers to return, and if that applies to only certain industries or certain areas of the country. As you can see, there is still a lot of doubt that remains, but one thing is for certain – it appears that we have cleared the peak of new cases and hospitalizations associated with COVID-19. That is definitely a sigh of relief. At this point, there continues to remain uncertainty as to the extent of damage we will sustain to the economy. Time will tell.