Earnings Projections Revised Higher, A Look at GDP Recovery, and More Risk for Less Reward

American unemployment remains at historic highs as debate wages on about the contents of the next stimulus bill, and the $600 benefit boost remains a sticking point. Is the additional payment a disincentive to return to work or a major factor in our relative success at staving off economic collapse—or is it both? Real GDP saw strong gains as states began to reopen, but projections show it’s likely to take over a year to climb back up to pre-pandemic levels. Still, earnings analysts seem to be feeling more optimistic these days as they revise projections higher and expect continued growth in the S&P 500^® Index through Q3 and Q4. Retail investing has exploded in the “everything-from-home” era, but it could be a risky prospect in an environment where interest rates are historically low and decent returns are requiring investors to take on significantly more risk. And the U.S. isn’t the only nation pumping out stimulus… check out the breakdown of the EU’s newly passed ~$2 trillion rescue plan below.