In general, for markets to move higher, investors need to see two things – what’s being done to stop the virus spread and what’s being done to limit the potential economic disruption. We got some clarity on the latter point. It took lawmakers a bit longer than many investors had hoped, but Congress was able to come to terms with a significant stimulus bill of $2 trillion. That’s more than double the stimulus bill in 2008 and, to put this in perspective, it is around 10% of last year’s GDP in the United States. The bill is also frontloaded, with much of the money scheduled to flow quickly into the economy in the coming months.
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Commentaries are published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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