Still in Freefall and Looking For a Way Out

Scott Anderson
Chief Economist

We are still in the freefall stage of the economic shock brought on by the COVID-19 pandemic and will likely remain in this stage at least through the second quarter.

Against this backdrop U.S. equity markets have been downright ebullient over the last month, looking forward to business reopenings and celebrating the flattening of the curve of new virus cases.

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Whither Oil Prices and Inflation

Scott Anderson
Chief Economist

At the start of the year expectations were for flat, but stable oil prices in 2020. But, the reality has been decidedly different with spot West Texas Intermediate oil prices plunging from $61.46 at the start of the year to just $16.50 on April 23, a decline of over 70.0%. WTI oil prices are now at their lowest level since 1999.

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Cabin Fever Hits Markets – Long Economic Winter Ahead

Scott Anderson
Chief Economist

Growing up in Minnesota, I am very familiar with the cabin fever that can result from long winters and being stuck at home for months on end.
Before long you’re climbing the walls with boredom and dreaming of the places you will go and the things you will do when the weather breaks. The U.S. equity market rally at this point is feeling a lot like that these days.

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Unemployment Soars – Fed Gets the Helicopter Ready

Scott Anderson
Chief Economist

The Federal Reserve, as lender of last resort, is stepping into the fixed income and credit markets to extent that has never been seen, even at the height of the global financial crisis more than a decade ago.

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