The Word from Main Street

Market Update for the Week of September 14, 2020

The most recent ClearBridge Recovery Indicators Update shows that the economic rebound is gaining steam. Improvement in Housing Starts and Credit Spreads data confirms ClearBridge’s view that a durable market and economic bottom has formed.

Key Takeaways:

According to Jeff Schulze, CFA & Investment Strategist with ClearBridge Investments:

- Two indicator improvements in August further strengthened the overall green signal of the ClearBridge Recovery Dashboard.

- The uptick in Housing Starts signifies a healthy housing market which is an important component if the overall economy, with a strong multiplier effect from complementary spending.

- A narrowing of Credit Spreads has bolstered demand for fixed income securities, ensuring the ability of public companies to access markets to finance operations.
9-14 Recession.jpg
Source: ClearBridge Investments
Shifting to the battle against COVID-19 and the economic recovery, below is the most recent economic data from First Trust Advisors that shows the month-over-month (MOM) and week-over-week (WOW) comparisons of high frequency economic data. This data helps us determine where we are in the economic recovery.
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Source: First Trust Portfolios
According to sciencemag.com, Obesity Reviews, as of August 26th, 2020, an international team of researchers found that people with obesity who contracted COVID-19 were 113% more likely than people of healthy weight to land in the hospital, 74% more likely to be admitted to an ICU, and 48% more likely to die. In the U.S., 40% of adults are considered obese. According to beckerhospitalreview.com, as of September 8th, 2020, more than 266 hospitals and health systems have announced plans to furlough a portion of their staff to help address the financial fallout from the COVID-19 pandemic. According to The New York Times, as of September 10th, 2020, 25 vaccines are being tested for safety and dosage, 14 are in expanded safety trials, 9 are in large-scale efficacy tests, 3 are approved for early or limited use, and 0 are approved for full use. Below is the most recent chart of daily new positive tests vs. daily deaths in the U.S.

 9-14 Daily.jpg
Source: First Trust Portfolios
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