So, as I write this, the markets are in the green. Why is that? Considering things are on hold till at least April 30…
First on Friday evening, Abbott Laboratories announced emergency FDA approval of their COVID19 test, that can provide a positive result in 5 minutes! Abbott is able to produce approximately 50,000 tests per day. This is what the markets want to hear – improved testing and diagnostic capabilities!
Second, President Trump took the important step of moving the timeline to April 30. Again, the markets wanted to see this clampdown continue till the curve starts to bend.
Third, companies are racing towards a vaccine, with Johnson & Johnson the latest entrant into the race. More details about the exciting developments from the sector can be found here.
And our final green shoot over this weekend was the game plan put together by Dr. Scott Gottlieb, outlining steps we need to re-open the economy.
Quote of the Week
‘Fixed income functioning well is a pre-requisite for any significant equity move.’ -Michael Antonelli, Market Strategist, R.W. Baird.
We are coming up on a critical point in this economic battle.
Mortgages, rents, etc. are going to be due. I encourage everyone, if you are able to, please pay your bills. The reason I stress this is because mortgage servicers are going to be required to pay the bond holders whether or not anyone makes mortgage payments. Imagine how that would muck up the system! (I believe this will be part of the next relief bill personally.) So to help keep thing functioning as close to normal, please pay your bills, not because I really have a soft spot for the servicers, but eventually this is the type of stuff that ends up impacting all of us in the end one way or another.
Additionally, please share this link to anyone who owns a business or non-profit. This is the new Economic Disaster Loan website from the SBA. Please also read and share this article from US Chamber detailing the Paycheck Protection Program.
The Feel Goods…
These pups are Sprinkles & Buttercup and are being fostered by friends of ours…Who wants to bet they become permanent members of the family?
But since this is a financial blog, we will say they represent the battle between the bulls and the bears.
Its hard to believe that it’s been a couple of weeks already, but I am not going to lie – seeing things like I describe above in the ‘Green Shoots’ section, makes me bullish on America!