It appears that a stock market recovery is underway.
When retail sales numbers rose 17.7% in May 2020* and home building permits and starts rose significantly in the same calendar space, clearly something is going on favorably in our growth expectations. Also it could be that with the coronavirus scare, stock prices dropped well below their real value.
On the economic front, low mortgage rates and consumer demand for homes could be a robust driver for the coming quarters. The University of Michigan’s consumer sentiment survey showed the index for June at 78.1, a meaningful increase over May’s strong reading of 72.3.
On the coronavirus status in many developed countries (especially in our trading partner countries), their respective governments have provided significant fiscal support on a timely basis. Sharing medical breakthroughs and capital costs on research should accelerate the effort on containing and ultimately defeating the virus.
*U.S. Census Bureau
Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results.