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May 6, 2021

MARKET COMMENTARY: May 2021

Fiscal stimulus and the vaccine rollout provide traction for US Economy…

  • High-frequency data suggest the economy in the United States gained considerable traction in the last half of March, a period that coincided with the start of stimulus payment disbursements under the $1.9 trillion American Rescue Plan Act of 2021. The somewhat earlier-than-expected direct payments alongside a continued strong pace of vaccinations point to the U.S. economy growing above the 5% we had previously anticipated in the first quarter. Read More… – Vanguard
  • As we enter the second quarter, the economic landscape is dominated by two surges – a fiscal surge and a vaccination surge. On the fiscal front, the $1.9 trillion American Rescue Plan is estimated to provide $1.2 trillion dollars of additional spending to the economy in the next 6 months alone, with most of the money going to low and middle-income households who have a greater propensity to spend. On the vaccination front, the U.S. has made considerable progress in its rollout efforts with total administered doses climbing to over 100 million and rising at a pace of close to 2.5 million per day. The U.S. rollout is paving the way for an end to the social distancing recession and the reopening of service-sector businesses – factors that will likely lead to a very powerful pickup in GDP growth in the second quarter and late 2021.  – Dr. David Kelly, Chief Global Strategist, JP Morgan
  • While the market won’t move in a straight line, and a correction is always possible, as the economy opens up, those sectors of the market that fell behind in the past year (because of shutdowns and limited global trade) will be a source of strength. The Fed remains highly accommodative, there are trillions of dollars of cash on the sidelines, vaccines have reached over 50% of Americans, and the economy is expanding rapidly. Some valuations have been stretched, but the market as whole remains undervalued. Read more…  – Brian Wesbury, Chief Economist, First Trust

As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels.  Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.

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This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. © 2016 Bernardo Wealth Planning

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