The Bottom is not in yet!

We can't keep posting $3, $4 trillion every three months or every two months" 

- Larry Kudlow

It is time to look at alternative investment asset classes. (Gold, BTC, RE+)This statement does not bode well for the economy and individuals if we have a lingering effect from CV19. More BK's, Credit/Mortgage Defaults and layoffs will be on the way. 

The good news is that Americans are saving more money than anytime in history. Roughly 2 in 5 Americans (41%) say they’re saving more money now than they were prior to the COVID-19 pandemic, with younger Americans more likely to say this than their older counterparts. Around half of Gen Zers (50%) and millennials (52%) are saving more than they were before compared with 39% of Gen Xers (ages 40-55) and 29% of baby boomers (ages 56-74).Close to half of Americans (48%) report spending less now than they were pre-pandemic, and 36% have changed how much they’re investing.

The bad news is that Americans are saving more which hurts the real economy. Also, mortgage standards are tighter which hurts the sellers in some markets. We have seen a spike on home sales in Austin for homes that are listed but keep in mind we are dealing with a double digit reduction in the volume of homes for sale in the area year on year. 

My recommendation remains the same: Stack dry powder & get ready to invest. My time horizon is 3-9 months for the fallout to really hit locally.

https://www.nytimes.com/reuters/2020/07/10/business/10reuters-health-coronavirus-usa-kudlow.html

https://www.mysuncoast.com/2020/06/17/nerdwallet-survey-how-pandemic-alters-americans-financial-habits/

Excuse any typos!

Danny