Markets React to Fed Report
The safety of our EWM community is always a priority for us. Just as we focus on mitigating risk in your portfolio, we now find ourselves thinking about how to mitigate the health risk to you and our team. Given the uncertainty of the situation, we’re cautiously taking steps to reopen the office
- Our Team — Some of our team returned to the office this week, but others are continuing to work from home.
- Client Meetings — Although we’d love to see you in person again, we’re continuing with phone or video conferences for the time being.
- Curbside Service — If you desire to stop by the office, please call first to set up a time. We’ll meet you outside, wear masks, and practice social distancing. And of course, please do not come by if you or someone in your household has symptoms.
We’re grateful for you and our whole amazing Eagle Wealth community. Thank you for adapting with us and making the best of things. We look forward to the day when life returns to normal and we can welcome you back into our office for a cup of coffee. For now, take care of yourself and each other, and let us know if we can help.
Your Eagle Wealth Team
Some Good News
We've enjoyed hearing stories of how you've made our Invested in Community campaign your own. Over the next few months, you'll get a glimpse of how our Eagle Wealth family is making small (but impactful) changes in their communities.
Take this heartwarming story about why our first participant chose their nominee,
"I’ve known this incredible kind and giving woman for 30 plus years. She’s recently divorced and is a hair stylist, she works tirelessly to make ends meet. During the pandemic she hasn’t been able to work and the financial impact has been devastating. She is also, one of the many who have yet to receive any unemployment.
Her mother has late stage dementia and needs care. Every morning she goes over to her mother’s and spends at least 2 hours getting her breakfast, preparing her lunch, laying out her medications and getting her situated for the day. After a full day at work, she goes back to her mother’s and spends three to four hours, preparing her dinner, doing laundry, and setting out her medications for the following day and goes through the evening, and her bedtime routine. When she has a day off, she spends it shopping for her mother or taking her to the many necessary appointments that she has.
This woman is selfless and deserves a special treat. Wild Pear is her favorite restaurant and eating out is a luxury. I’m so excited that she’ll be able to take a few minutes out of her day to treat herself."
Are you feeling what we're feeling? Because we're smiling ear to ear. We hope this good news lifts you up and inspires you to join in!
Didn’t get a chance to enter? It’s not too late. The next drawing is on June 24th so enter now. And by the way, we didn’t hear from anyone outside Oregon, so we’d like to clarify— wherever you live, you’re eligible to take part!
How are your summer travel plans coming along? If your community is anything like Central Oregon, then you're ready to pack up and (safely) GO! Everyday more parks, lakes, and campgrounds are opening up. With most people sticking close to home this summer, there's no time like the present to explore your own backyard.
We love when you send us photos of your hiking, kayaking, and RV adventures - so keep em' coming.
Tent camping not your thing? Check out the top 11 modern glampgrounds to see if there's one in your neck of the woods.
The Week on Wall Street
Investor sentiment turned negative last week, amid an increasing number of COVID-19 cases in states where reopening has been underway as well as a subdued economic forecast from the Federal Reserve.
The Dow Jones Industrial Average dropped 5.55%, while the Standard & Poor’s 500 lost 4.78%. The Nasdaq Composite Index slipped 2.30% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, fell 3.10%.[i],[ii],[iii]
Reality Bites
The optimism that drove stock prices higher these past several weeks slipped away on reports of a jump in COVID-19 cases, which sparked worries of a second wave slowing the economic recovery. A sober forecast for the economy by the Federal Reserve further dampened investor sentiment.
The week started upbeat with “reopening” stocks, e.g., financials, transportation, retailers, travel and leisure, and industrials, leading the way higher. But the momentum was soon lost as stocks turned mixed on Tuesday and Wednesday and then moved decidedly downward, with the S&P 500 losing 5.9% on Thursday.[iv]
Amid a volatile week, big technology companies resumed their market leadership, with the NASDAQ Composite closing above 10,000 for the first time. Stocks pared their losses on Friday, but it wasn’t enough.[v]
Fed Forecasts Economic Growth and Interest Rates
On Wednesday, the Federal Reserve said that it would keep the federal funds rate near zero and maintain its monthly purchases of Treasury bonds and mortgage-backed securities.
The Fed also issued its forecasts for 2020-2022, indicating that it saw its benchmark federal funds rate remaining at zero, with inflation at 0.8% for 2020, increasing to 1.6% in 2021, then to 1.7% in 2022. Fed officials also expect the economy to shrink by 6.5% this year, with Gross Domestic Product growing 5% and 3.5% in 2021 and 2022, respectively. Their forecast for unemployment predicts a steady decline over the next 2½ years, from 9.3% by the end of 2020 to 5.5% in 2022.[vi]
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Retail Sales. Industrial Production.
Wednesday: Housing Starts.
Thursday: Jobless Claims. Index of Leading Economic Indicators.
Source: Econoday, June 12, 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.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: Oracle (ORCL), Lennar (LEN).
Thursday: Kroger (KR).
Source: Zacks, June 12, 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.