Economic data releases are now capturing the effect the Coronavirus is having on the U.S. economy. As you would expect, it’s bad. But, instead of focusing on whether a data point is good or bad, let’s focus on this instead…
We all know economic data releases are going to be bad. When 22 million people lose their jobs in an economy built on consumer spending and confidence that shouldn’t be a surprise. Therefore, instead of looking at a situation or data point as strictly good or bad, we need to be looking at it from a better or worse point of view. If a data point is awful but better than expected don’t be surprise to see a market move higher.
We have seen some unprecedented moves and economic data releases these past four weeks. We are seeing another one today. Crude Oil, as of this taping, is down nearly 38% to $11.40/barrel – its lowest price in over 20 years as we have a massive mismatch between supply and demand. So, for the week ahead let’s see that happens with oil and how that trickles down to the broader stock market. Does the market sell-off or does the broader market look past this, figuring that as economies start to reopen that oil demand and prices will again move higher?
For a more detailed market report head on over to our Insights page. Where there are some of the key economic data points to be released this week. Also subscribe to our YouTube channel and check out some of our other social media pages.
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