April 13, 2020

Good Monday morning,

We hope you and your family enjoyed a nice holiday weekend.

Last week, which was shortened by Good Friday, was another “winner” for the U.S. stock markets.  So much so that it was the best week since 1974.  More importantly, since the market low on March 23, the Dow, S&P 500 and NASDAQ have rallied more than 28%, almost 25% and just over 19%, respectively.

There are primarily three reasons cited for the recent market rally.  First and foremost, an improved outlook on the battle against the coronavirus – new treatments and vaccines are being tested every day.  Second, massive monetary and fiscal policy injections of liquidity into the economy.  The goal has been to keep small businesses alive during the shelter in place and to put money in the pockets of especially those who have lost their jobs.  Finally, the stabilization of oil prices amidst the production war between Russia and Saudi Arabia.

We begin this morning with renewed pressure on the markets with continued concerns about the actual oil production numbers and the affect in oil prices in the near future.  Also, there may be some profit taking coming off such a great week.

Please stay safe and healthy.