April Economic Review: The economy hit a wall in mid-March
April 14, 2020
Economic Review: Economic conditions turn downward on a dime (Page 3)
As expected, economic data for March were significantly worse than in February. Government mandated social distancing and stay-at-home policies to combat the COVID-19 virus are having an enormously negative impact on the economy, as shown by the data starting about the middle of March.
Financial Markets Review: Records are made to be broken (Page 4)
At 131 months, the recent bull market for the S&P 500 index was the second longest on record. It came to an end via the quickest decline into a bear market in history – taking only fifteen trading days. There were few investments outside of government bonds where there weren’t large losses during March.
The Outlook: GDP set to plunge in the second quarter on virus-driven shutdowns (Page 5)
Economic activity slumped in the final weeks of the first quarter and, given the probability that these lockdowns will stay in place for some time, will likely remain in a deep freeze through much of the second three months of the year as well.
Go deeper with the full April report linked below.