In our recent virtual event, Ryan Detrick, Chief Market Strategist with LPL Research provided a timely and relevant presentation on the economic impacts of COVID-19, along with an Outlook for 2021. We encourage you to watch the Playback Recording - Outlook 2021: Powering Forward.
Back in March, the stock market was telling us that hard times were coming. We quickly experienced the fastest bear market in history with sharp declines. Sure enough, April was a devastating month for the economy, yet stocks had one of their best months.
It is important to remember that stocks are forward looking. We began to see signs of economic recovery in the second quarter of 2020. The United States saw gains in employment, consumer spending and other economic data. However, by late July there were indicators that the recovery might be faltering, which prompted focus on a new stimulus bill.
In the fourth quarter, vaccine development boosted the financial markets with optimism. Investors anticipate vaccines will bring the coronavirus under control to resemble something close to normal in the near future.
As we move forward, 2021 is primed to deliver advances to further limit the impact of COVID-19. The goal remains to keep the economy as open as possible, while also keeping people safe. Continued progress in the response to COVID-19, including further stimulus measures will be key to sustaining the economic recovery. The pace of the recovery most likely will pick up speed—probably in the middle of 2021.
Our team closely monitors and considers current events - among a variety of other factors - as we make wise and educated financial decisions for all our clients. No matter the challenge or circumstance, we work to fulfill our mission of "striving to build financial security, see dreams fulfilled, and create enduring legacies."
If you have questions or would like to discuss your own financial planning or investment strategy needs, we welcome you to Contact Us to set up time to discuss further.