Slowing of COVID-19, Alphabet Soup of Recovery Predictions, Balance Sheet as Percent of GDP

Happy Friday! As we wrap up the week we take a look at some positive news on the COVID-19 front. New cases in most European countries, in addition to China and South Korea, are trending down with one notable exception…will Europe’s poster child for “Do Nothing” regret that decision? Here in the U.S., many states are beginning to slow the spread even those that have begun to reopen. Will this prompt the remainder of state governments to begin reopening the economy or will we see more outbreaks, proving its too soon? Given that nearly a quarter of the U.S. workforce has applied for unemployment benefits since the beginning of March, its no mystery why states are pushing to reopen. While some of the “bad news” seems to be slowing, many economists are trying to predict the shape of this recovery using the alphabet…let’s just hope the “L-shape” doesn’t become reality. Meanwhile, China is experiencing a welcomed reprieve as their industrial production is taking a “V-shape”. Now we wonder what will happen with tariffs as both the U.S. and China may benefit from a hiatus. The U.S. balance sheet as a percent of GDP is up to 33% but despite the massive stimulus packages, we are still better off than many regions of the world. At least a high percentage of American’s have agreed on one thing… America’s favorite sports movie. Which is your favorite?