The Markets

Many states and provinces are slowly reopening.

That’s welcome news for many businesses, but we’re far from business as usual. Last week’s economic news out of the U.S. included unemployment hitting an 80-year high, a record drop in retail sales (-16.4 percent), and an unprecedented decline in industrial production (-11.2 percent). While the exact Canadian statistics remain unknown, the situation south of the border is a good indication of what we can expect to hear from Statistics Canada.

Weak consumer demand is also a concern, according to Matthew Klein of Barron’s. “…The pandemic has lowered consumer demand much more than it has damaged productive capacity. It’s much easier to bring factories back online than it is to get customers back into shops and auto dealerships…Unless consumption rebounds quickly, the world will soon be faced with an unprecedented glut of goods that can’t be sold.”

Some households may be able to sustain or increase consumption because of generous unemployment benefits, lowered expenses due to being stuck at home, and, for those lucky enough to be able to continue their work remotely, continued wages.

In recent weeks, the number of unemployed workers in the U.S. has grown to about 36 million, according to CBS News, and the U.S. is not alone; unemployment has skyrocketed in Canada, as well. Unusually high unemployment combined with unusually high unemployment benefits may mean some people may have more money to spend than they might have had otherwise. The combination could improve demand for goods. It also could make it more difficult for employers to persuade employees to return to work.

Last week, major stock indices finished lower. If you have any questions or concerns about your investment portfolio or current market conditions, please don’t hesitate to give us a call.

Source: Refinitiv

Öffnungsdiskussionsorgien

The German language boasts many unique words with oddly specific meanings. You may be familiar with some German words that have become part of the English language such as schadenfreude (finding joy in other people’s trouble), wanderlust (an impulse to travel the world), and weltschmerz (sadness about the state of the world).

Amanda Sloat of ForeignPolicy (FP) reported the Germans have invented a new word to describe debates about when and how to reopen the world: Öffnungsdiskussionsorgien.

The goal of many leaders around the world is to minimize infection, minimize death, and minimize economic hardship. It’s a tall order and there is no ‘right’ answer. One thing is clear, though. People who have been on lockdown, no matter which country they reside in, have cabin fever. FP reported:

“An American expat in Spain promised her teary tween that for her 12th birthday she could help take the trash 50 yards to a communal receptacle across the courtyard; that special gift was scrapped after a police car parked nearby. To take advantage of exemptions allowing owners to walk their pets, one person in Romania took his fish on a walk, while a young woman put her cat in a bag to justify a trip to the mall.”

In the United States, Buzzfeed and BoredPanda have reported on an abundance of pandemic jokes and memes. Americans have watched Michigan’s Father Tim Pelc use a squirt gun of holy water to bless Easter baskets from a socially safe distance. We’ve also been alerted to the possibility of a baby boom that will yield Quaranteens in 2033 and endless rounds of toilet paper jokes.

Weekly Focus – Think About It

“The future belongs to those who believe in the beauty of their dreams.”

--Eleanor Roosevelt, Former First Lady, diplomat, and activist

Best regards,

P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added.