{"id":293,"date":"2020-02-03T00:00:00","date_gmt":"2020-02-03T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2020\/02\/03\/coronavirus-us-debt-now-23-trillion-an-early-spring\/"},"modified":"2020-02-03T00:00:00","modified_gmt":"2020-02-03T00:00:00","slug":"coronavirus-us-debt-now-23-trillion-an-early-spring","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/coronavirus-us-debt-now-23-trillion-an-early-spring","title":{"rendered":"Coronavirus…US Debt now $23 Trillion… & an early Spring!"},"content":{"rendered":"

Market Pullback (Coronavirus) or Correction?<\/strong><\/p>\n

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I don\u2019t know why I become amazed at the dramatization on the business\/market news station I listen to and watch!\u00a0 Yes I certainly understand the markets pulled back last week, dropping Major Stock Indexes into negative territory for the 1st<\/sup> month of 2020.\u00a0 I guess it\u2019s all about drama, as drama increases viewership and ratings!<\/strong><\/p>\n

I\u2019m thinking, hey, after a 30% rise in the US Markets last year combined with trade concerns, the election, etc., the markets needed an excuse to pull back.<\/em><\/p>\n

The Coronavirus is certainly very serious, and needs to be viewed as such.\u00a0 We do however have some market history.\u00a0 There have been approximately 12 virus outbreaks since 1981, according to Argus Research.\u00a0 In each case the S&P 500 was higher in both 6 and 12 month after each virus emerged. So far responses have been swift and let\u2019s hope the virus is contained, and then cured!<\/p>\n

I do expect the virus to impact US GDP to a small degree, and China to a more significant degree.\u00a0 Let\u2019s see what spillover impact will result…. hopefully not much!<\/p>\n

The markets will price in the impact and hopefully as in the past, move higher shortly thereafter.\u00a0 If the pullback turns into a correction, that is not any reason to panic as pullbacks and corrections are very normal and should be expected!<\/p>\n

Markets for the Week<\/strong><\/p>\n

All major equity indexes fell last week with the Dow Jones falling (2.52%), the S&P 500 (2.10%), the Nasdaq Composite (1.76%) and the Russell 2000 (2.89%).<\/p>\n

Over the pond, the MSCI EAFE International Stock Index dropped (2.50%) and the MSCI Emerging Market Stock Index (5.09%).<\/p>\n

Bonds as expected in this environment rose as the yield on the 10 Year US Treasury finished Friday with a yield of 1.52% which was below the 3 month Treasury Yield.<\/p>\n

US GDP 2.3% for 2020<\/strong><\/p>\n

The US economy grew by 2.3% for 2020 as announced last Friday.\u00a0 The 4th<\/sup> quarter number was an expected 2.1%.<\/p>\n

The annual 2.3% is the slowest in 3 years and probably held back by the US\/China Trade situation as most are speculating.<\/p>\n

Our debt situation, which doesn\u2019t seem to get a lot of attention, is now over $23 Trillion Dollars! That\u2019s a lot of dough!\u00a0 The interest we\u2019re projected to pay on our debt this year is $460 Billion Dollars<\/strong>.\u00a0 4 years from now, the projection is between $684 and $713 Billion Dollars.\u00a0 Where will this increasing debt service payment come from?!!!<\/p>\n

Punxsutawny Phil Predicts Early Spring<\/strong><\/p>\n

\u00a0<\/strong>Punxsutawney Phil was put to the test on Sunday Morning at 7:25 am.\u00a0 The tradition was brought to Western PA by German Immigrants and has been celebrated since 1887! Great news, we hope, Phil did not see his shadow<\/em><\/strong> which suggests an Early Springtime!<\/p>\n

Springtime definitely breeds optimism.\u00a0 What a great time of the year.\u00a0 Let\u2019s hope it comes early this year! \"\"<\/p>\n

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Market Pullback (Coronavirus) or Correction? I don\u2019t know why I become amazed at the dramatization on the business\/market news station I listen to and watch!\u00a0 Yes I certainly understand the markets pulled back last week, dropping Major Stock Indexes into negative territory for the 1st month of 2020.\u00a0 I guess it\u2019s all about drama, as […]<\/p>\n","protected":false},"author":3,"featured_media":295,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[20,6,21,9,18],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/293"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=293"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/295"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}