This morning’s unemployment report revealed that the US economy lost an unprecedented 20.5 million jobs in April and hence, the unemployment rate soared to 14.7%, up from 4.4% in March.
In one month, the coronavirus has wiped out all job gains since the Great Financial Crisis of 2008 and has brought the decade long economic growth streak to an abrupt halt.
My heart goes out to those whose jobs have been affected. These are real people with families to feed and bills to pay. Our Government has stepped in with unrivaled stimulus to help support them during this time, and I’m hopeful this helps get them through. I’m also hopeful this is swift and as the economy reopens, that their jobs will be waiting.
As a reminder, the equity market isn’t in sync with the economy in any systematic way. While this devastating news seemingly would cause the stock market to drop by vast amounts…the market actually ended positive today. This serves as a reminder that Mr. Market is forward looking. It is typically not a ‘current news of the day’ machine. Over the long term, it is a wealth compounder. It knows this virus has rocked our world, and it senses that there is a light at the end of the tunnel. Brighter days await. It lures you to stay invested.
As they say; This too shall pass…it may pass like a kidney stone, but it will pass.
