In December 2018 with the S&P 500 at 2,500, we forecast it would hit 3,100 by the end of 2019 and then pushed our forecast to 3,250 as stocks soared. The S&P 500 rose 28.9% in 2019 and hit that revised target on the first day of trading in 2020. We then raised the target [...]
When the employment report for April is released this Friday, the economic damage from the deepest of the Coronavirus shutdowns will become clear. We estimate that nonfarm payrolls will be down roughly 22 million versus March, and the unemployment rate will skyrocket to around 17.0%, the highest reading since at least 1948. To put that [...]
Doctors think differently than economists. They put patients with a potential for brain damage in an artificial coma to stop swelling, and when it stops, they bring them out. This fits with the Hippocratic Oath all doctors take, which states "First, do no harm." The idea is to "limit" damage and then "restart" a more [...]
Total deaths in the US from COVID19 look like they'll hit at least 3,000 by the end of March. A potentially brutal April lies ahead. In the meantime, the measures taken to limit deaths have temporarily tanked the US economy. Initial claims for jobless benefits soared to 3.283 million per week, easily the highest ever. [...]
Dear Friends and Clients, I want to start by commending our Clients on your overall response to this truly unprecedented situation we all find ourselves in. Many of you have been with us through one, or even several, declines and we are gratified that our educational message seems to have been taken to heart. As [...]
Due to fears about the Coronavirus – more specifically, the forceful government measures designed to halt its spread, the US is on the front edge of the sharpest decline in economic activity since the Great Depression. The US economy was on track to grow at around a 3.0% annual rate in the first quarter before [...]
We are in the midst of a Coronavirus Contraction. The news keeps highlighting worst case scenarios. The markets are volatile. Data in the months ahead may get ugly. But this too shall pass. How do we navigate this storm until the clouds part? https://youtu.be/7pazQdPe2Ws
Brian S. Wesbury, Chief Economist Robert Stein, Deputy Chief Economist Date: 3/16/2020 Back in July 2008, then-Treasury Secretary Hank Paulson said he wanted a "bazooka" to deal with financial threats to Fannie Mae and Freddie Mac. Paulson wanted Congress to give him an unlimited credit line for these enterprises. This time around, it's the Federal [...]
