Dear Clients and Friends,
The market had a very good day today as Gilead announced their latest test for a treatment was promising. Details are scarce still though. The Fed meeting ended as expected with no significant changes. They reiterated that there have been some very steep declines in economic activity and they will keep rates low until the economy looks like the worst is past.
GDP for the first quarter came in worse than expected with an almost 5% annualized drop. Keep in mind the economy was only significantly affected for about 2 weeks of the first quarter, so the second quarter GDP is expected to be far worse. As of right now, most people expect GDP to start to rebound in Q3, the big concern is how quickly that will happen.
Tomorrow we get the latest round of new unemployment data. That is expected to be around 3-4 million. It will be interesting to see if the articles about a backlog of 10-15 million people who so far have been unable to apply for unemployment because of outdated systems are correct.
Feel free to contact us at any time with questions about your individual situation.