This week's emergency interest rate cut brought mortgage rates even lower—the average 30-year fixed rate dropped to 3.29%, its lowest level on record—in a potential boon to U.S. homeowners, prospective homeowners, and consumers at large. Heating those homes, and driving to and from them, could get a little tricky though given the state of the energy market... U.S. crude production has surged and OPEC (the Organization of the Petroleum Exporting Countries) had to decide how to cope with the increased competition during their meeting yesterday. It sounds like a production slowdown to the tune of 1.5 million barrels a day is on the horizon—if Russia gets on board, that is. And while coronavirus cases continue to multiply, China's stock market at least appears to have stabilized, but how (and where) exactly could the virus affect U.S. GDP growth?
1. Lower interest rates and/or refinancing at lower rates should further strengthen the U.S. consumer...
Source: WSJ Daily Shot, from 3/5/20
2. Between demand concerns and U.S. production, OPEC+ met this week to cut global supply. Monopolies don't work well when other major suppliers emerge!
Source: WSJ Daily Shot, from 3/5/20
3. The Chinese stock market has fully recovered from the COVID-19 outbreak.
Source: WSJ Daily Shot, from 3/5/20
4. While no one knows what effects the COVID-19 virus will have on the economy, this looks to be a reasonable road-map... more than than many thought but not a 2008 type disaster.
Source: The Wall Street Journal, from 3/5/20
5. That's quite the generational wealth gap!
Source: The Washington Post, from 12/3/19
6. And pulling in gen z... A good reminder to start financial education early!
Source: WSJ Daily Shot, from 12/31/19
Monday's rally had many feeling hopeful that we'd seen the worst of the coronavirus market fallout, but the rest of this week has been anything but smooth. For BCM's perspective on the current market unrest, read "From the Desk of the PM - Update on Market Selloff and Coronavirus Fears" by the BCM portfolio management team.
Disclosure: The charts and info-graphics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are a recommendation to take any action. Individual securities mentioned may be held in client accounts.