25 June 2020

1) There are ten companies that may not make it through the summer. These are high brand names of Hertz, J.C. Penney, Pier 1 Imports, Tuesday Morning, J. Crew, Neiman Marcus, Gold’s Gym, Tailored Brands (Men’s Warehouse and Jos. A. Banks) and Diamond Offshore Drilling, which are all in bankruptcy now. The high number of retailers shows the ongoing retail apocalypse with the retail sector, which had already hit before the pandemic by falling sales, lower costumer traffic and too many stores. Retail was near the edge of collapsed with last years Christmas holiday shopping doing little to boost business, especially those located in malls. Last year, 9,500 retail stores closed, with estimates of 15,000 stores closing for good in 2020. This may indicated a fundamental shift in America’s economy, a shift away from hyper-consumerism to something else besides a service based economy. Shopper visits to stores are about half of last year’s numbers, and that’s with businesses reopening after more than two months on lockdown.

2) Fears continue to grow that we are not finished with the Convid-19 crisis yet, as the number of new cases continues to increase. This is happening with states and cities easing their shutdown measures to reopen the economy to start a recovery. The seven day average of new virus cases has swung up 30% from a week ago. It was hoped the warm weather would suppress the virus spread as it does with the flu, but if the virus is resurrecting, then the shutdown may need to returned with the resulting economic impact.

3) The Ford Motor Co., who is in the process of its global restructuring plan and paying off debt related to the coronavirus pandemic, is betting its future on its new line of pickups. Ford is offering its popular F-150 model in traditional internal combustion engines, new hybrids and all electric versions. The Ford F-150 has been the country’s top selling truck for more than 40 years, the best selling for the last consecutive 38 years. Their F-150 is a key part in Ford’s plans to profitably grow their business, to help in the $11 billion restructuring cost and pay off the $20 billion dollars in new debt.

4) Stock market closings for – 24 JUN 20:

Dow 25,445.94 down 710.16
Nasdaq 9,909.17 down 222.20
S&P 500 3,050.33 down 0.96

10 Year Yield: down at 0.68%

Oil: down at $38.07

9 June 2020

1) The worst U.S. economic downturn since the Great Depression has been officially declared a recession by the National Bureau of Economic Research. While the recession had been a foregone conclusion for most people since the coronavirus outbreak shut the economy down, the NBER declaration makes it a fact, adding that the different characteristics and dynamics makes this recession different from previous recessions. The recession is officially to have started in February.

2) The child care businesses are the hardest hit by the Covid-19 pandemic shutdown with a third of the child care workers laid off or furloughed nation wide. Only the hotel and restaurant industries were hit harder, but because child care providers operate on such thin margins, many are going out of business. With parents unable to find day care for their children, they are unable to return to work, as much as they would like to. So this in turn is another hindrance to economic recovery for America. Therefore, Congress is proposing as much as $100 billion dollars for the child care industry in the next stimulus package.

3) A ten year long treasure hunt has come to an end with the finding of a treasure chest filled with jewels and gold coins worth a reported million dollars. An estimated 350,000 treasure hunters have been searching in the Rocky Mountains since 2010, a ten year long treasure hunt. Hidden by Forrest Fenn, an 89 year old art dealer, who confirmed the treasure was found by an anonymous person from the east. Thousands have spent considerable time and resources searching for the treasure, some even giving up their jobs to search full time. Some have claimed the entire enterprise is an elaborate hoax and have filed lawsuits. Clues to the treasure’s location were in a cryptic 24 line poem that Fenn wrote and published in his book, “The thrill of the Chase”, published in 2010.

4) Stock market closings for – 8 JUN 20:

Dow 27,572.44 up 461.46
Nasdaq 9,924.74 up 110.66
S&P 500 3,232.39 up 38.46

10 Year Yield: down at 0.88%

Oil: down at $38.51