The Coronavirus may be moving into our rear-view mirrors at this time and should receive less attention by the news media going into the fall barring any resurgence in the number of new cases being reported. The large sell off that took place recently in the equity markets around the world was the equivalent of turning off the global economic light switch. Retail sales for March and April here in the U.S. declined over 20% before showing signs of improving in May. Non-farm payrolls also declined sharply in April and May by 22 million before showing signs of improvement in May with a gain of 2.5 million. The recent abrupt downturn was not due to a gradual or sharp deterioration in the fundamentals of the economy and market, but was rather an artificial self-induced response to combat an invisible enemy, COVID-19. The extraordinary measures taken in response to the Coronavirus Pandemic certainly created real economic challenges. But it has also created real economic opportunities. I believe the basic fundamental strengths of the U.S. economy, having been suppressed, are largely intact. The early stages of this recovery appear to be V shaped; only time will tell for sure. What really matters and counts now is how quickly the global economic light switch gets turned back on. I believe the unwind from this lockdown will likely favor the U.S. equity markets over the international markets and, as such, would weight my portfolio to favor the U.S. equity markets accordingly for the Great American Comeback.

Any opinions are those of J. Greg Garner and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Asset allocation and diversification do not guarantee a profit nor protect against a loss. Dividends are not guaranteed and must be authorized by the company’s board of directors.