PSI Stock Market Recovery
On this episode of the Planned Solutions Incorporated Podcast, The stock market has baffled some stock market observers as the market has rallied despite a number of existential risks. However, the recent market recovery has followed the pattern from past event-driven recessions in which economic activity was negatively impacted but recovered fairly quickly. Many investors may be using these historical comparisons to guide their investment decisions. And, The US economy contracted sharply in the first quarter due to economic restrictions related to the Coronavirus. Not surprisingly the bulk of the decline came from a decrease in household spending on services and business investment in equipment. However, investment in residential structures increased. Government spending was flat as a large portion of the economic stimulus was not implemented until the send quarter. Also,The potential future cost of long-term health care is a risk that can derail a financial plan. Therefore, it is important to have a plan to fund these expenses should the need arise. There are several ways that long-term care can be funded including the use of long-term care insurance. However, it is important that the plan reflect an individual’s financial goals and fit within their financial resources. And, US retail sales increased 17.7% in May as the pent up demand helped the US economy recover from the Coronavirus shutdown. Physical stores reported the largest increase as many stores were able to reopen. Meanwhile, online sales increased 9% while grocery stores returned to trend growth rates of less than 2%. The surge in retail sales in May was a record increase but is still not enough to offset the decline in sales from February to April showing that there is still progress to be made to achieve a full recovery. Plus a look at the Planned Solutions Incorporated Office Bulletin Board-The income tax deadline is fast approaching. The new deadline of July 15th is just a month away. Planned Solutions is still planning to hold our annual cancer charity golf tournament in the Fall. Scheduling issues with the golf course, as a result of many tournaments being rescheduled from the Spring to the Fall, has forced us to reschedule to Monday, October 1st. This is still a tentative date as we will continue to monitor local guidelines and restrictions to determine if the tournament should proceed or be cancelled for this year. More information will be provided as we get closer to the Fall. Chase Armer's book- Financial Planning Insights is now available at: https://store.bookbaby.com/book/financial-planning-insights https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279/ref=sr_1_1?dchild=1&keywords=chase+armer&qid=1586894022&sr=8-1 To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail Katie@PlannedSolutions.com The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc. ADDRESS: PHONE: 1130 Iron Point Road, Suite 170 (916) 361-0100 Folsom, CA 95630 (800) 750-2111 E-MAIL: FAX: Shannon@PlannedSolutions.com (916) 361-0191 WEB SITE: www.PlannedSolutions.com #finance #invest #investment #stocks #inflation #deflation #bonds