Monthly Video Newsletter October 2020

Capital Design Private Wealth |

Hello and welcome to the October newsletter from Capital Design Private Wealth.

My name is Hilton Kelly I'm Co-founder and financial advisor this month we're going to take a look back at the first half to hear and review the economy in the markets. And then we're going to talk a little bit about what we see moving forward, but before I do, I want to encourage you to maybe slow down a little bit and think about what you'd still like to accomplish in 2020 is there a checklist out there that we need to address or ask yourself? What are the one or 2 things that you get done this year? So that we can go into 2021 feeling like we're carrying some good momentum I'd love to hear from you.

Well, the first quarter of this year. The US economy sank by a little over 3% that's almost 190,000,000,000 dollars. The second quarter though was worse. The US economy sank more than 30% we lost over 2,000,000,000,000 dollars of economic activity from the shutdown. Now, there are sectors that were really, really hurt such as health care and consumption of clothes and shoes. Those kind of things. But there were sectors that actually help with a foundation or the economy.

Information technology and consumer communications actually did well and help stabilize things. As the state started to open back up and the stimulus got in. We did see economic activity turnaround and so to the stock market and the market recovery hasn't been on fumes it's been based on good, solid corporate profits. Now, early in the year, the unit analysts thought that we could see a reduction of about year over year. Corporate earnings while the numbers have come back and it's just about 40% decline, which is better than expected.

So that's why we've seen the market rally here recently looking forward, we do think the US economy is going to continue to recover. However it's going to be deep into 2021 or even 2022 before we get back to the same level of economic activity that we had before the shutdown. The analysts believe that the US stock market in 2021 will have a little bit more of a single digit year. So we need to manage our expectations and make sure your money is in the right spot. And if you think you need money, from your account in our next three to 6 months, we should really talk.

But overall it's been great to see you guys face to face again. We started to see clients and it's been a wonderful breath of fresh air. I hope that everybody is able to get out and enjoy some of this beautiful autumn weather that we're having at least here in New England and we'll be talking soon.

Take care.