Greetings Eagle Wealth Community,
Spring is officially here in Central Oregon and we’re taking advantage of the fresh start. As we all learn how to navigate this changing world, you may hear from us more than usual. We’ll continue with the weekly market updates, but you’ll notice some additional content in these emails including an “On the Lighter Side” section with occasional updates on our team member’s adventures at home. Now more than ever is the time for connection, so please don’t hesitate to call us if you have any questions or if we can help.
Your Eagle Wealth Team
Avoiding COVID-19 Scams
With most Americans at home, time spent online has increased and according to the experts, so has cybercrime. Covid-19 scammers are targeting consumers, trying to cause confusion and take advantage of people. As always, our primary goal is to keep you safe and informed so please be on the lookout for these red flags.
Email Phishing — Be wary of unsolicited email campaigns and attachments. These email scams appear normal but when downloaded contain malicious items to obtain your personal information. As always, never respond via email to requests for personal or financial information. Call the company instead using a trusted phone number from your bank statement or known website.
Stimulus Checks — Remember your bank and the IRS will not call for your personal information in order for you to receive a stimulus check. Also, beware of checks showing up with odd amounts or that require you to call a number to verify the check amount.
Charitable Giving — If you’re interested in donating to a non-profit, do a little research by reviewing the Federal Trade Commission's Charity Scams page here and make sure it’s not a predatory impersonator.
Family members of our EWM Team have already been targeted so please be careful!
The CARES Act, a roughly $2 trillion coronavirus response bill, has been signed into law. Read more to learn about the most important provisions of the CARES Act.
Investing Statistic of the Week
Going back to 1930, if an investor missed the S&P 500’s 10 best days in each decade, total returns would be just 91%, significantly below the 14,962% returns for investors who held steady through the downturns. -CNBC, March 7, 2020
On the Lighter side
Matt Hobson gained recognition by becoming "Twitter Famous" with a post on Stephen Colbert's Stephen at Home show.
Colbert asked his audience,
"What skills did you learn as a young person that you need now that you’re stuck at home? Hit me back to show them off!"
Matt contributed his creative "pepper art" image pictured above. Over 1,700 people reacted to Matt's pepper. Many of those responses were filled with gratitude for the wholesome post and some even recreated their own adaptations. It's times like this we’re stopping to share and enjoy the little things that may brighten someone's day.
The Week on Wall Street
The stock market staged a broad rally this week, buoyed by the prospect that COVID-19’s grip on the nation may be easing and news of another Federal Reserve program to help stabilize businesses.
The Dow Jones Industrial Average jumped 12.67%, while the Standard & Poor’s 500 climbed 12.10%. The Nasdaq Composite Index rose 10.59% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 6.32%.[i],[ii],[iii]
A Change in Sentiment
Market sentiment took a more hopeful turn on news of an apparent peaking of cases in Italy and New York State. Investors also welcomed comments by Dr. Anthony Fauci that the start of a turnaround in the outbreak is close at hand.
The S&P 500 Index surged 7.03% to start the week and added to gains as the week progressed. Positive trends in COVID-19 cases, an agreement between Russia and Saudi Arabia to cut oil production, and the Fed’s unveiling of a $2.5 trillion loan program to assist small and midsize businesses fueled the rally.[iv],[v]
Credit Markets Stabilize
As the economy shut down in March, credit markets began to exhibit deep stresses. A functional bond market is essential to economic and financial health, which is why the Federal Reserve initiated a number of actions aimed at helping them to operate.
Intervention by the Fed appears to have helped. A raft of new bond offerings may be signaling that investors are now willing to take on more risk. Last week, 11 investment-grade companies sold nearly $20 billion in bonds.[vi]
A stable credit market helps the stock market, and while the bond market is not yet out of the woods, its improving health is a positive sign.
One of the major challenges for investors in the last month has been determining realistic stock valuations amid uncertainty over corporate earnings. With earnings season about to unfold, investors may be able to better gauge the impact of the pandemic on company profits. Investors will get to hear from corporate leaders about the state of their businesses and possibly their outlook for the next few quarters. This may help fill in the gap that currently exists but what remains uncertain is whether that information proves to be positive or negative for the market.
THE WEEK AHEAD: KEY ECONOMIC DATA
Wednesday: Retail Sales. Industrial Production.
Thursday: Housing Starts. Jobless Claims.
Friday: Index of Leading Economic Indicators.
Source: Econoday, April 9, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: Johnson and Johnson (JNJ), JP Morgan Chase (JPM), Wells Fargo (WFC)
Wednesday: Bank of America (BAC), UnitedHealth Group (UNH), Citigroup (C), Goldman Sachs (GS)
Thursday: Blackstone Group (BX), Taiwan Semiconductor (TSM), Abbott Laboratories (ABT)
Friday: Schlumberger (SLB), Kansas City Southern (KSU)
Source: Zacks, April 9, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.