Market Notebook


Last week might be considered a consolidation week for fixed income and equities generally speaking. Visibility into the real economy remains poor as states consider whether to begin lifting stay at home restrictions.

The coming week is a heavy economic data release week along with a heavy company earnings release week. Continued volatility appears likely.

Longer term, the economic stop associated with COVID-19 is beginning to split market participants into groups of winners and losers. For example, in the travel industry, airlines received a bailout but rental car companies did not. This sort of bifurcation continues and is likely to accelerate. The debt issues of operating companies may provide clues as to which companies are likely to survive without restructuring. Working out from under this event will take time. There will be both pain and opportunities.

Best Wishes!

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