wealthMD Blog

Some Government Stimulus Payments Sent As Debit Cards – Fiscal Stimulus Update The IRS reported that roughly 4 million Americans would receive their stimulus payments as a debit card rather than a check or direct deposit. The CAREs Act appropriated $2.2 trillion for Americans in order to bolster economic activity and provide stimulus to combat the effects of the pandemic. …

The past 30 years brought upon the onset of globalization, maximizing comparative advantage of countries globally by allowing the production and export of inexpensive products. China’s inclusion into the WTO in 2001 has since allowed the country to manufacture and export products around the world in mass quantities. Globalization is now in danger of retracting, as trade fears among countries …

A drop in mortgage rates to near historic lows has not been enough to offset a decline in demand for homebuyers. The ongoing travel and socialization restrictions are inhibiting would be home shoppers from viewing and buying properties. Of the various factors influencing the housing market, employment is the most significant. No matter how low mortgage rates are, if someone …

The Fed pledged its continued support for the economy in the form of fixed income purchases including government bonds, mortgages, and various ETFs. The Fed also resorted to buying junk bonds in the open market, as well as continuing to buy unlimited amounts of U.S. government bonds and mortgage backed securities. Lending facilities were also extended to corporations and municipalities …

Oil’s plunge in April was of historic proportion, falling below $0 per barrel for the first time ever in history. The collapse in U.S. oil prices, as tracked by WTI, fell as storage for crude oil became nearly completely unavailable worldwide. The economy may have an indirect boost with the price of gasoline expected to drop to new lows as …

The Federal Trade Commission (FTC) posted a handful of identified scams circulating throughout the country as a result of the coronavirus outbreak. Scammers are exploiting consumer fears and paranoia by targeting wary victims via email, phone, and text messages. Below are various scams to be aware of and what to do: Don’t respond to texts, emails or calls about checks …

The country is composed of millions of small businesses from home-based one person consultants to hair salons and manufacturing companies. As defined by the SBA’s Office of Advocacy, a small business has less than 500 employees and operates independently, not under the control of another entity. As of 2018, the SBA acknowledged that there were 30.2 million small businesses in …

Extreme volatility appeared in the oil markets as prices fell to their lowest levels since 2002, tumbling to $20.37 (WTI) in mid-March, then rebounding 25% on March 19th, the largest one day rise in oil’s history. Prices collapsed when Russia and Saudi Arabia signaled an increase in production as demand fell worldwide due to the virus outbreak. Saudi Arabia and …

The passage of the $2.2 trillion stimulus plan, known as the Coronavirus Aid, Relief and Economic Security Act (Cares Act), provides critical funds to various sectors of the economy in the form of payments, tax breaks, loans, and subsidies to individuals and small businesses nationwide. As the largest economic relief package in U.S. history, the $2.2 trillion stimulus plan equates …

– Domestic Stock Market Overview Equity markets experienced volatility in March not seen since the 1930s, with daily declines so sharp that rarely-used mechanisms to halt trading were activated by the exchanges on multiple occasions. The S&P 500 Index saw an average daily change of 5.2% in March, the most extreme volatility since November 1929. Stocks fell into bear market …

The sudden loss of jobs and mass layoffs by businesses nationwide has brought about the single largest increase in unemployment claims in the country’s history. What should have been another average week for unemployment claims of roughy 243,000 based over the past five years, turned into 3.28 million people applying for unemployment for the week ending March 21st, and another …

Global trade has been hindered by U.S. China trade disputes for the past two years, but the virus outbreak has nearly stalled all trade between China and its trading partners. Production delays resulting from the virus are expected to affect company earnings across a host of various industries. The disruption of established supply chains has created havoc for companies trying …

Family size is shrinking in the U.S., with only 2.52 members per household on average in 2019, making it the smallest size ever in the country’s history. Historical data tracked by the U.S. Census Bureau showed an average family size of 5 in 1880, double by today’s standards. The decline in family size is believed to be attributable to various …

The most recent data from the Federal Reserve identified an increase in the savings rate to 7.7% of disposable personal income as of December 2019. Some economists view this increase as a possible pause in economic growth until consumers feel more confident about spending. The Federal Reserve defines the personal savings rate as a percentage of disposable personal income (DPI), frequently …

The abrupt drop in interest rates has brought about a boost to the housing market in the form of lower mortgage rates. The rate for a conforming 30-year loan fell to 3.45% at the end of February, nearly a full percentage point from a year earlier. Falling interest rates have prompted an increase in mortgage activity as the cost to …

The global spread of the coronavirus has affected consumers in countries across the globe, curtailing demand for products mainly manufactured in China. It is expected that as worldwide demand for Chinese products decreases, the country’s primary economic component, manufacturing, will abate, thus hindering the country’s economic expansion. Based on 2019 data, the top five economies in terms of GDP are …

As a gauge of how a virus can affect the U.S. economy, the National Center for Biotechnology Information monitors and tracks the economic costs related to the flu every year. The estimated average annual total economic burden of influenza, also known as the flu, to the healthcare system and society stands at $11.2 billion, which includes medical expenses such as hospitalization, …

February saw stock valuations retreat to where they were in July and August 2019. Analysts believe that the pullback has helped identify several overvalued stocks. Valuations are considered to be more in line with historical standards relative to where they were at the beginning of the year. The final week of February saw all equity indices fall substantially. The S&P …

Treasury bond yields traded at record low levels, driven by global investors seeking safe haven assets. All Treasury maturities yielded well below 2% at the end of February, lower than the Fed’s inflation target of 2%. The dramatic drop in yields brought the 10-year Treasury bond yield to 1.13 % at the end of February, the lowest yield for the …