Message from Jon
This week has been quite interesting for sure. Last week was flat on wall street except for Friday's advance. This week has been down indicating what MIGHT be the beginning of the next leg down in our opinion.We had a collapse of the oil price mid-day on Monday as a result of futures contracts not being sold and expiring with the owners not having anywhere to store the oil.1 In speaking with our CFA last night, I learned a new word too. CONTANGO.2 Contango is not a good thing to buy into according to Tyler.
We are now seeing the CEO's, Analysts, and Economists beginning to incorporate concerns of the low oil into their forecasts now. We were correct in our view two weeks ago, and now, our concerns, like so many others' are now beginning to manifest.
We are watching and being patient at present. Those of you that are preparing to invest, kudos, because it is our belief that when this breaks, the rebound will be quite something to witness!
Till we speak again, enjoy your time together before it's gone!
First Post-COVID-19 Data Arrives
WEEKLY UPDATE - APRIL 20, 2020
The Week on Wall StreetStock prices pushed higher last week as news of a White House plan to reopen the economy and reports of a potential COVID-19 treatment helped the market overcome weak economic data and an ugly start to the corporate earnings season. The Dow Jones Industrial Average rose 2.21%, while the Standard & Poor's 500 advanced 3.04%. The Nasdaq Composite Index gained 6.09% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, slumped 1.75%.