17 JUL 2020

1) Looming in the wings of the pandemic crisis is another major crisis . . . and epidemic of evictions. With the unemployment rate still more than 10% and eviction protections lapsing across America, housing experts expect millions of Americans to lose their homes in the coming months. For millions of Americans, the housing situation was already precarious before the pandemic. Many are paying large percentages of their monthly incomes toward rent, but don’t have enough to cover an unexpected expense of just a few hundred dollars. With insufficient money from unemployment, people are facing living on the streets during 100 degree plus temperatures, hurricane season and possibly freezing weather if the problem continues. This would also mean increased exposure to the Convid-19 virus.

2) A bright spot in the economy is that retail sales rose again for the second straight month as shoppers slowly trickle back into stores. But with conronavirus cases on the rise, this could be short lived. Sales increased 7.5% for June, from May, better than the 5% estimated by economists. Sales were driven by clothing, electronics and appliances as well as home furnishing. Still, foot traffic through stores is way down, people coming in with specific items to consider buying instead of just browsing. So far this year, 4,000 stores are closing permanently with as many as 25,000 expected by the end of the year. Last year, there were 9,302 store closing.

3) The traditional investing axiom of 60/40 portfolios is coming into question. This is the mix of 60% stocks and 40% bonds, which is generally considered the best risk minimizing strategy for individuals to use in building their fortune. But with Treasury yields now hovering around zero, and expected to stay there for years, those gains are in doubt. For decades, this strategy has given the best returns with the least risk in times of volatile markets. Consequently, investors are scrutinizing the strategy as maybe out of date in a changing economy.

4) Stock market closings for – 16 JUL 20:

Dow 26,734.71 down 135.39
Nasdaq 10,473.83 down 76.66
S&P 500 3,215.57 down 10.99

10 Year Yield: down at 0.61%

Oil: down at $40.80

U.S. JOB CLAIMS CONTINUE TO FALL… 42 YEAR LOW THUS FAR………

job pic

By: Economic & Finance Report

The jobless claims reports coming in around 255k-256k has sparked analyst reactions that obviously they did not foresee. Jobless claims continue to fall, as stronger working economy continues to rise. These indications point to a strengthing job market. 

Jobless claims hit a 42 year low last week and improvements seem to be scalable as we approach the holiday season, starting next month. As the job market improves so do the economy and common trend that consistently is proactive amongst each other.  The fewer claims that are presented the better the global markets and economy are strengthened, helping everyday working people.

PEOPLE ARE SAVING A WHOLE LOT OF MONEY NOWADAYS!!!!!!!!!!!!!!!

save money pic

By: Economic & Finance Report

In today’s economy people tend to be saving a whole of money, and economists are stating that this is not expected.  When people save money, then there is no spending  to assist in bolstering the economy; meaning there is even less demand for  goods and services, which then also implicates stagnation. 

Recently people are not spending as  much but saving more, and this happens to be throwing economists through a “whirlwind”. People in a good economy should be spending according to economists, and when this is not happening, theories and concepts are sort of disproven to an extent. People are currently saving  more money, even though interest rates are at the lowest that they have been for decades.

Borrowers are benefactors of low interest rates (theoretically), so spending should be indicative; this seems not to be the case in 2015. Currently, government and business entities are benefiting from low interest rates as opposed to current borrowers. Something seems to be brewing, but exactly what it is????? Is the definitive question…-SB

NIGERIA FEDERAL BANK INCREASES POSITION IN SUPPORTING NAIRA!!!

Nigeria Naira

By: Economic & Finance Report

The Nigerian Central Bank has placed currency traders in a tough position. As the Nigerian currency (Naira) slides, the Central Bank of Nigeria has indicated that currency traders will have to buy or sell their position in the Naira within the next couple of days, or be forced to sell it at the rate set forth by the Central Bank. CBN (Central Bank) has also restricted some currency trading in efforts to boost the Naira. Tough sanctions will be followed if noone adheres to the rules set by the CBN (Central Bank of Nigeria)  as well.

Many currency traders, analysts, researchers and speculaters are seething to the tune of the declination fo the Naira, betting that the Naira will continue to derail against the US dollar. The Naira has been devalued to 168 to the dollar but it continues to slide none the less.

The Nigerian economy is set to grow 5.5% this year set from the revision of 6.4% previously. This revision was set by the Nigerian finance ministry led by finance minister  and renowned global economist Ngozi Okonjo-Iweala.

-SB