Describing the Moment

Fast might be the appropriate adjective summing up the current moment in America.  As we noted here last week, domestic stock markets entered bear status faster than ever before.  Toilet paper is flying off the shelves at record rates even though COVID-19 is a respiratory virus, not one which attacks the intestines.  Even freeway speeds are quicker as fewer workers commute to the office.

Now the government has gotten in on the speed.  According to Treasury Secretary Steven T. Mnuchin, the administration wants to send checks to Americans “immediately” and is looking for bipartisan support “…to pass this legislation quickly.”  Time will tell how this unfolds and how effective it is, but the Beltway is trying to get along for once.

News is moving fast as well.  Atlas does not have a unique insight into the duration of this crisis, but we expect health news to continue worsening for weeks.  We only presume this because it would be in line with the experience of other countries impacted earlier by the virus.  How quickly the economy continues reacting to the news is anybody’s guess, but the prospects of America facing its 48th recession since the Articles of Confederation were agreed upon are increasing.  If it’s like the last one, we won’t even know its official until we are well into the downturn. 

And then one day, the news will become less bad.  It will get followed by even less bad news, and these moments could be the sparks which ignite a quick chain reaction of positive movements in the economy and marketplaces.  In the meantime, let’s remain optimistic, follow the advice of our medical professionals, and stay connected via high-speed technology.  Atlas is here if you have any needs.