The Independent Market Observer | Outlook. Opinion. Insight.

Coronavirus Update: March 19, 2021 [Video]

Written by Brad McMillan, CFA®, CFP® | Mar 19, 2021 3:25:52 PM

Today, I'd like to provide an update on the coronavirus, including the economic and market implications. The medical situation continues to improve, as the vaccination campaign moves forward. Still, case growth remains above the levels seen between the second and third waves, and positive rates have not improved in weeks. We still have a very real pandemic on our hands.

Turning to the economy, state reopenings have helped the job market and spending. Businesses are hiring again, and we saw a strong jobs report for February. The federal stimulus payments are now hitting bank accounts, and all of these positives should keep the economy going—and even accelerate it.

As for the markets, this economic improvement is largely what they have been expecting, but now they’re dealing with the problems of success. The prospect of inflation and higher interest rates have rattled markets over the past couple of weeks. Even as the fundamentals of demand and earnings improve, that improvement is calling current valuations into question. So, while the overall trend remains positive, will we see more volatility ahead? Watch my latest video to learn more.