Pivot with KDI Wealth Management

Consumers Moving Back into Economy-But Risks Remain

Over the past week, the biggest news in the coronavirus crisis has been what's not happening; that is, we're not seeing any signs of a second wave of infections as a result of the ongoing reopening of the economy and the loosening of social distancing measures. In fact, the data reveals that social distancing had been subsiding in many areas even before the formal loosening. So, we're three weeks or more into the start of a new environment for the spread of the virus, and there has not been a significant increase in the case growth rate. In fact, case growth itself has trended back down to around 20,000 per day.
 
The real question is whether recent public protests will generate a second wave of infections. We won't know the answer for at least another two weeks, but this possibility is something we must keep an eye on through June.

Spread Rates Remain Low as Reopening Continues

Over the past week, we've seen more good news in the coronavirus crisis. Perhaps most important, there were no signs of a second wave of infections stemming from the ongoing reopening of the economy and the loosening of social distancing measures in several states. In fact, the data reveals that social distancing had been subsiding in many areas even before the formal loosening. At two weeks or more into the start of this new environment for the spread of the virus, some growth in cases could have been expected. The fact that we have continued to see the spread rates at close to the lowest levels of the pandemic is a real positive.

Early Signs Suggest Reopening Going Better Than Expected

In the past week, we had some mixed news on the coronavirus pandemic. Testing continued to rise, although improvement in slowing the spread rate and case growth seemed to stall. Further, the number of active cases started to grow again, a negative sign. Overall, conditions still remain much better than they have been in recent weeks, but we did not see much (if any) additional progress in controlling the virus.

Beware of Coronavirus Scams

The IRS has announced a warning agains coronavirus scams.  Please use caution and read the article informing of items to watch out for.

Pandemic Slowing, Economy Reopening, and Markets Reassessing

In the past week, we've had some good news. To start, there has been continued and even accelerated progress with the pandemic, and it looks like we could be approaching "phase 2." Plus, the economy has started to reopen, resulting in some positive effects. But the news for the financial markets hasn't been so good, as they've experienced volatility as the prospect of reopening has turned into reality. Let's take a closer look.

What Will Progress in the Coronavirus Crisis Mean for the Economy and Markets?

In the past week, we've seen signs of progress in the coronavirus pandemic. As such, it's a good time to evaluate where we are with containing the virus-and what comes next for the markets and economy. Let's start with taking a look at the data on the virus itself.

Q&A: Understanding the New CARES Act

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) into law. The CARES Act has been enacted as a direct response to the COVID-19 pandemic and is intended to provide immediate and ongoing economic relief to individuals and businesses affected by the crisis.
 
The following Q&A covers key questions you may have about the legislation.

What the Stimulus Package Will (and Won't) Do for the Economy

The Federal Reserve (Fed) has been consistently ahead of the coronavirus crisis. To help ensure that this medical crisis does not transmute into a financial one, the Fed stepped up early and hard. Not only did it cut interest rates essentially to zero, it also eased restrictions on banks to enable faster and more business lending. Plus, the Fed has taken unlimited measures to support the financial system as a whole, restarting programs from the last financial crisis to purchase bonds and inject money into the system.
 
So far, it seems the Fed has been successful in its efforts. The Fed and monetary policy have done what they can do, and they are poised to do more as needed. But monetary policy-think interest rates and bank regulation-can only do so much. What's been missing, until now, has been direct policy support (i.e., writing checks) for workers and businesses. Spending money, known as fiscal policy, is the province of Congress. Now, it appears the two parties have agreed on a stimulus deal aimed at providing financial support-checks-directly to workers and businesses.
 
This deal is the missing piece in the needed policy support for the economy, and it should significantly mitigate the damage. Let's take a closer look at what the stimulus package will (and won't) do for the economy, starting with the numbers.

Market Volatility and Your Investing Strategy: Should You Stay the Course?

It has been a very difficult couple of weeks in the financial markets. Stock markets worldwide have dropped sharply on the spread of the coronavirus pandemic. Worse, the shutdowns of large parts of the economy as a risk control measure may lead to further declines. With your portfolios down, and with the headlines screaming more risk, what should you do as an investor?

Coping with Financial Anxiety in Uncertain Times

As news of the coronavirus continues to dominate the headlines and cause turmoil in the markets , it's understandable that you may be concerned about your portfolio. Financial anxiety can have a profound impact on your quality of life-so we thought we'd share some tips to help you minimize stress during these uncertain times.