Coronavirus Update from Commonwealth CIO Brad McMillan, October 16, 2020

Brad McMillan, Commonwealth’s CIO, provides an update on the coronavirus, including the economic and market implications. On the medical front, the pandemic remains under control at the national level, but state-level outbreaks are getting worse. Multiple states have seen case growth accelerate, to the point that some health care systems are at risk. This is something we need to watch. The news was better overall on the economic front. Layoffs ticked back up, but unemployed people continued to move back into the labor market at a good pace. Consumer confidence has stayed off the lows, and consumer spending growth has improved. Plus, business confidence and spending remain healthy. Despite the risks, the recovery carries on—and the stock market has responded. In fact, a rally at the start of the month took markets back close to all-time highs. But will the recovery be strong enough to support the markets through rising medical risks and fears that another stimulus deal won’t be cut until after the election? Watch this video to learn more. Follow Brad at blog.commonwealth.com/independent-market-observer.