Category Archives: Economy

S & P 500 Index Reaches New High

Economy, ,

One of the most highly watched indices of the US stock market, the S&P 500 closed on Tuesday, August 18th, at a record 3,389.78, close to 3 points above its previous high that was set last February 19th.

And the S & P 500 was not alone. The NASDAQ also climbed to a new record, passing its previous June high, while the Dow Jones Industrial Average came within just 5% of its own February peak.

After the pandemic began to negatively affect the US and world economy, the stock market took an unprecedented nosedive, losing about one third of its value. But US stocks have been on the rebound since the US central bank announced a banquet of innovative economic support directives on March 23rd.

One analyst was surprised by the speed and strength of the market’s recovery, especially since the country is still faced with a pandemic that is ravaging many locations across the country, with many businesses closing and enormous numbers of people losing their jobs.

Observers believe the recovery is partly explained by actions taken by the Federal Reserve and other kinds of stimulus plus investors who are sure the economy will eventually get back on track and see the stock market as a good place to make money on that prediction.

Driving the stock market’s positive performance are to a large extent technology stocks. Apple, Microsoft, and Amazon are among those companies that have benefited from lockdowns as people shelter at home and use their devices and internet more than ever. Cloud computing and machine learning companies have also benefited.

“We would not be flirting with all-time highs were it not for technology,” said Terry Sandven, chief equity strategist at US Bank Wealth Management.

Michelle Smith crisis as opportunity

Crisis as Opportunity: Advice from Certified Divorce Financial Analyst Michelle Smith

Economy, Education, Lifestyle, Uncategorized, , , ,

A recent wealth management podcast interviewed Source Financial CEO, Michelle Smith. Smith’s unique experience as a long-time financial advisor, premier money manager, divorcee, and co-parent of a child with special needs is insightful and informative. Of the many lessons learned from this interview, perhaps the most pertinent are those that relate to our current Covid-19 reality as well.

Surround Yourself With Positivity

According to Smith, any big crisis brings out the best and worst in us and those around us. When her son was born and she received his Down syndrome diagnosis, she channeled all her energy toward doing what needs to get done. Her husband at the time, however, didn’t make that switch. As she helps many separated couples navigate the corona emergency, she sees those who are rallying and figuring out how to co-parent during a lockdown, and others who are fighting more and harping on old grudges. When she was a new mom, Smith says she used her own positive nature to propel herself forward. She also made sure to leave no room for negativity in her life and surrounded herself with those who shared her optimism. She extends this advice now too: the familial and financial realities of this crisis are not easy, but if you remain positive and focus on action, things don’t have to be catastrophic.

Ask for Help

Divorce is not something anyone should do alone. Individuals going through a divorce must surround themselves with capable legal and economic professionals to ensure their best interests are fairly represented. Encouragement and love from family and friends provide guidance and support. Smith has dedicated her career to helping women build a financially stable and sustainable life after their marriage. The same is true for co-parenting a child with special needs: it takes a village. Now, more than ever, we are seeing the value of community. We all need to get comfortable asking for help and letting our virtual, and literal, villages be there for us when we need them. The key, according to Smith, is to be specific with our requests.

Focus on Shared Goals

Even as a marriage crumbles, it is important to focus on the values and objectives that once brought you together. Remember the respect you have for one another and direct that toward the settlement. Your ex-spouse is not someone you will ever be “rid” of, especially if you share children, so keep things cordial and constructive. Now is an opportunity to rethink the tactics of decoupling: nobody wants to prolong the process of divorce or excessively litigate matters. Mediation, with the right professionals and the proper mindset, can yield fair, equitable, and civil outcomes for all involved. As more families (married, divorced, or otherwise) spend increased amounts of time together during this crisis, concentrating on shared goals – like cohesion, health, monetary sense—can be empowering.

Americans on a Shopping Spree Rebound As Corona Lockdown Eases

Economy, ,
Courtesy Jernej Furman

The month of May posted a record increase in-store buying as people begin to come out of their homes where they were under lockdown for the better part of two months.

Retailers saw an increase in shopping by 17.7% in May as compared to April, helping revitalize a devastated economy that saw an 8.3% and 14.7% drop in spending in March and April, respectively. The renaissance has not completely reversed the negative trend, however. Spending is still down by 6.1% since this time last year.

Other indicators show a slow recovery from the mayhem the coronavirus caused to the US economy. Two and a half million jobs were added to the economy in May, but it is not clear if the trend is upward, or the economy will reach a low steady-state that becomes the country’s new normal.

“This may very well be the shortest, but still deepest, recession ever,” said Jennifer Lee, a senior economist at BMO Capital Markets. But she added that it’s “not likely that we’ll see a repeat in June as this is pent-up demand unleashed in one month.”

The surge in buying was fueled in large part by the $3 trillion the government sent out to individuals and businesses as a rescue package to keep the economy and households from complete ruin.

The possibility of a real recovery during the reality of a worldwide pandemic will depend on how willing people will be to shop, travel, mingle in crowds, and how many businesses stay open and hire or rehire workers.

“While the big increase in retail sales in May is encouraging, there is still a huge amount of uncertainty about the strength of the rebound,” said Gus Faucher, chief economist at PNC Financial Services. “It depends on a lot of factors outside of the economics.”

Surprise Uptick in Employment Boosts Stock Market

Economy, , , ,
Image by FrankundFrei from Pixabay

Beginning in September 2010 until March 2020 the United States added more than 22 million jobs to the economy. Then came the historic COVID-19 pandemic that wiped almost that entire 10-year gain in a mere 6 weeks. In only a little more than one month the unemployment rate skyrocketed from about 3.5% in February to a high of 14.7% in April. The trend for May has reversed that free-fall, with unemployment dropping to 13.3%, less than many were expecting.
The re-opening of the economy, including a return to work of employees to the leisure and hospitality, construction, education, health services, and retail sectors, has lifted the total number of employed during the month of May.


The good news about employment caused a rise in the stock market, with the NASDAQ almost reaching a record high. The S&P went up more than 2% and is now only 1% shy of where it was at the beginning of 2020, and less than 6 percentage points short of where it was in February, before corona burst onto the planet, to devastating effect.


The NASDAQ, which weighs towards hi-tech companies such as Amazon, Apple, and Microsoft, is protected to a certain degree from economic downturns down-turns. The sheer size of these companies is protective, but in addition, lockdowns necessitated by the coronavirus did not affect tech companies as much since workers can more easily pivot to working from home than traditional companies that require a human workforce to interface with consumers. Even more, the dependence consumers had on e-commerce during the lockdown boosted the strength of these types of companies.


During May employers added 2.5 million jobs to the job market, despite the prediction by economists that the government was going to report the loss of 8 million jobs during the month.

Money Management during dual crisis

How to Manage a Dual Crisis: Coronavirus and Market Meltdown

Commodities, Communications, Consumerism, Economy, Emerging Markets, Finance, Health Care, Health Tech, Investments, News, Taxes, , , , ,

The CEO of Source Financial Advisors, Michelle Smith, has issued several suggestions for how the financial community can endure two conflating situations: the economic fallout of the coronavirus and market declines.

Be in Touch

Use technology to maintain contact with clients. Video platforms should be utilized as much as possible to offer a face-to-face personal interaction. While working remotely may mean that things are a bit more casual, it is important to keep things professional.

Be Authentic

The need to maintain decorum and professionalism notwithstanding, it is also important to be genuine with clients. They want to know that their money is in good hands, but they also want to have a sincere conversation about life. Start and end every conversation with a client by discussing their wellbeing. Ask how they are managing and feeling. Give them the assurance they need. Show them that you care about their physical, mental, and financial health.

Michelle Smith advises maintaining professionalism alongside authenticity during these trying times.

Be Pro-Active

When things are uncertain it is tempting to switch to preservation mode. We have a fiduciary responsibility to do our best for those who are already clients; we may not have the bandwidth to grow our business. But as we focus on the clients we have, we should also maintain business contacts and relationships that can help our business in the future. Look for opportunities in various sectors and actively pursue leads.

Be Thoughtful

Clients are worried about a lot of things right now. It is the job of financial planners and economic advisors to ensure that money is not an additional concern. The current health concerns coupled with economic uncertainties present people with two extremely basic fears: being alone and broke. Now is not the time to overwhelm clients with statistics and trends. Listen closely to what the clients are saying and what they feel most comfortable with at this time. This is unchartered territory for everyone. Every individual, business owner, team leader, and industry specialist is figuring out how to navigate these uncertain times. In the money management field, being attentive, genuine, forthcoming, and caring is the best business practice right now.