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Our government has been working to avoid an outright depression with a $3+ Trillion stimulus plan, and another $1 to $3 Trillion being debated in DC. But the downside will be very obvious on Thursday when the projected GROSS Domestic Product for the Second Quarter comes out, and it will be GROSS! It will be the worst since the Great Depression we’re told.
A USA Today article had this to say:
1) The…report [is] projected to show a record -35% annualized drop in gross domestic product…gross domestic product, or GDP, represents all goods and services produced in the country…”.
2) This is expected to be the shortest and steepest recession any time in recent history.
3) Resurgent Coronavirus cases across much of the southern and western states have paused or rolled back plans to reopen many businesses and the expected recovery in the second half of the year.
As usual, we have cash set aside in client accounts for a buying opportunity if it comes.
The Pandemic affects not only the markets but also our personal plans. One of our friends remarked yesterday, that usually, they are traveling now…out-of-state or out-of-the-country. Like many, they’re not excited about being locked into in a high-flying, long, narrow metal tube for several hours while re-breathing air with their seat-mates. This year, their travel has been to the Oregon Coast. Not a bad alternative.
Last weekend our family loved the water-sports on Devils Lake in a relative’s boat—we’re hoping these photos of Tim’s kids and a cousin will help you think cool thoughts during this hot weather.
Form CRS
In June of this year, the SEC (Securities and Exchange Commission) placed a new requirement on Investment Advisory firms. We are now required to provide all new and current clients a CRS (Client Relationship Summary) document (download pdf here). This document addresses relationship factors that should be considered when working with an advisory firm. I would hope that none of the content will be a surprise to you, but it is always good to review the important concepts related to fiduciary duty, potential conflicts of interest, and how advisors get paid.
Please do let us know if any of the conversation starter questions included in the document spark an interest in a follow-up discussion on one of these topics.
– Bruce Porter & Tim Porter, CFP®
