(Friday, August 14, 2020; 7:30 p.m. EST) As if the coronavirus crisis never hit, retail sales, according to today's data from the U.S. Census Bureau, are back on track with their growth rate before the outbreak.
CARES Act stimulus, in the form of $1200 checks, $600 weekly unemployment bonuses, and Small Business Administration transfers to businesses, fueled the V-shaped-and-then-some recovery.
The Standard & Poor's 500 stock index closed Friday at 3,372.85, a fraction off the record high of 3386.15 on February 19, 2020, when the pandemic began a plunge in U.S. stock prices.
The S&P 500 closed up +0.64% from a week ago and +40.47% than its March 23rd bear market low.
Stock prices have swung wildly since the crisis began and volatility should be expected in the months ahead.
Volatility in the price of stocks, real estate and other assets, along with emergency relief in CARES Act amendments to the U.S. tax code, create an array of new tax planning strategies that can materially affect your long-term financial plan, and some of the new opportunities must be acted on before the end of 2020. Please contact us for information about your personal situation.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.
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The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for McCarthy Asset Management, Inc and is not intended as legal or investment advice.