Market Update & Identity Tips
We hope everyone had a chance to enjoy the long weekend with family and friends and pay honor to those who served our Country and gave the ultimate sacrifice for the safety and freedom of others!
Global Markets Rally on Positive COVID-19 News & Economic Recovery
Global stocks are in rally mode today with the DOW Jones (DJIA) up over 650 points and once again above 25,000 for the first time since March 10th. In addition, Small Cap stocks and Real Estate stocks are up over 4% and 3% respectively today.
All this market optimism comes after a weekend of very positive news regarding COVID-19:
First, the CDC now believes that the virus is far less fatal than originally thought. Based on findings it recently released, approximately 35% of all individuals infected will never exhibit any symptoms. Of those age 49 and under who contract the virus, the mortality rate is now estimated to be approximately 50 for every 100,000 infected or 0.05%. Overall, the CDC now estimates the mortality rate of COVID-19 to be as low as 0.3% for the general population. While every life is precious, these lower mortality estimates are providing optimism that the economy can re-open and that the U.S. healthcare system is not likely to ever be overwhelmed if future waves of infections arise later this year.
Second, there is a race in many countries and among multiple pharmaceutical companies to produce an effective vaccine in record time and the results so far are exceptionally promising from companies like Moderna and Novavax.
Finally, U.S. state economies and many other global economies are starting to reopen, and economists are beginning to warm to the idea that there could be a sharp economic recovery later this year in the U.S. and many other countries.
We continue to urge our clients to stay in their seats in their retirement accounts and other investment accounts. Like today, positive upward movements in the markets will continue to come unexpectedly and rapidly as new scientific and technological innovations occur to get us out of this crisis.
DecisionPoint Financial Planning Tip of the Month - Protect your Identity
Our financial planning tips are often driven by the current financial challenges that we are helping many of our clients overcome. Given the extreme rise in fraud and identity theft during this crisis, we continue to urge all of you to subscribe to identity theft protection. We do not recommend one service over another, but IdentityForce, LifeLock, and IDShield are a few of the higher rated providers out there. These services charge an annual subscription fee, but for those of you who have recently been caught up in the State unemployment claim fraud, you know what a nightmare it is to have your identity stolen.
We are Conducting Financial Planning Meetings!
As a reminder, we are still conducting financial planning meetings for our fire service clients right now. Most of our meetings have been occurring virtually through Zoom and other video chat services. However, as soon as Washington re-opens we will have the following three options available for you to meet with us to build your family’s financial plan:
- In your home at your kitchen table
- In our Gig Harbor office
- Virtually via Zoom
As always, please reach out if we can be of assistance!
- Your DecisionPoint Financial Planning Team -