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Recap: May 2020

| June 01, 2020
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As we enter the back half of 2020 the market and economy look to recover from what has been an absolutely crazy past couple of months. The SP500 and Dow Jones have bounced back nicely and investors that did not lose their cool back in March have recouped hefty losses depending on their position. With lockdowns starting to lift in many places and protests starting in many others, this is certainly going to be an interesting rest of the year. 

Economy: Unemployment continues to skyrocket as the month's pass and has left millions in financial uncertainty. The killing of George Floyd by police has set off protests, looting, and riots across the country. The US seems to be crumbling in front of our eyes and the market continues to stay in the green and many wonder why. Where do investors put their money? With interest rates so low there are not that many alternatives. Equities offering a dividend higher and potential of appreciation look more attractive than a bond giving out little interest. Cash and purchasing power is crumbling as the government and reserve flood the market with cash which resulted in a new meme, money printer go brrr*. 

Politics: Trump looks to go to war with Twitter as they censored a tweet concerning the protests. Twitter said that the tweet was promoting violence but twitter did not look to continue this effort as violent tweets ran rampant during this past weekend. How can one company keep track of millions of tweets per day? This raises an interesting question. If twitter continues this policy, are they are a publisher and no longer a platform? These social media apps have grown to the size that they are public utilities in my eyes and free speech needs to be protected. Not all ideas are great but people need to be able to see the entire spectrum and flesh ideas out. 

Joe Biden has been absolutely silent since the protests have started. This seems to be his strategy and it might be working. Let Trump confront some of the biggest problems of some of our lives and see where he can make his best efforts after COVID is lifted. His live streams have been nothing short of stupid and have resulted in some off-putting moments. 

Personal Finance Tip: Shopping around your insurance every year can result in some great savings! If you haven't had any accidents in the past year you might be able to find a better deal for the same amount of coverage. You can get quotes from a variety of carriers or you can work with a broker who can shop around for the best deal automatically. 

Stephen Poll
Financial Advisor at Clay Financial
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