Written by Ben Rosholt, Wealth Advisor
Finally some positive news! The state of New York is starting to see positive results from the procedures that have been put in place. Topics for this week…
- Checking in on the Stimulus money
- Economic Update
We have received word that the first of the “CARES Act” rebate checks are being delivered today. For those that have not yet received payment [and are expecting it], an online tracking tool will be rolled out soon. Follow this link to visit the future home of “Get My Payment”.
You will also be getting a follow-up letter from the IRS. For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure they’re receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists. One note, it is not clear if non-eligible person will be receiving correspondence at all. At this point in time, it does not appear so.
Additionally, the IRS urges taxpayers to be on the lookout for scam artists trying to use the economic impact payments as cover for schemes to steal personal information and money. Remember, the IRS will not call, text you, email you or contact you on social media asking for personal or bank account information – even related to the economic impact payments. Also, watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds.
Is March 23rd the ultimate low? What I wouldn’t give to have our crystal ball out of the repair shop right now. Could we see a ‘V’ shape recovery like we saw in December of 2018? Absolutely. But we think the weight of the evidence suggests we’re more likely to see a retest of the March 23rd lows before the market is ready to start heading back upward and create a ‘W’ shape recovery. Market breadth (which looks at the number of stocks moving up and down) is still weak and will need to strengthen before we can start the next bull market. We are also going to continue to see more cases of COVID-19 around the country and world over the next few weeks, which could cause headline selling. There is a growing number of investors who are waiting for the peak in the number of confirmed COVID-19 cases before re-entering the market. When that happens, we expect to see an increased number of buyers come off the sidelines. The bottoming processes has started, and we are waiting to see a few more indicators to confirm that the bottom is finally in.
The views stated in this letter are not necessarily the opinion of CWM, LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with or without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
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