March 2020 Newsletter

As COVID-19 continues to weigh on our nation, US Congress was able to pass a $2 trillion stimulus package to provide some relief for the nation. The package not only provides funding for select sectors and corporations, but offers loans to small businesses and direct payments to residents to help alleviate some of the stress caused by the current economic situation. 

The Federal Reserve also did its part, by ratcheting up its quantitative easing and purchasing of assets. The Fed said it would purchase $500 billion of Treasury securities and $200 billion of mortgage-backed securities, while also providing $300 billion in new financing to businesses and employers. 

Yet, there are questions as to whether these measures will be enough to quell fears around the instability of the economy. Over the past 2 weeks, 9 million Americans filed for unemployment, the largest such amount in the country’s history, and as mass layoffs and unprecedented furloughs continue to sweep the nation, this number is expected to escalate. 

Source: https://www.cnn.com/2020/04/02/economy/unemployment-benefits-coronavirus/index.html

Luckily, Congress is engaging in talks to provide additional economic stimulus that will offer even more support to the economy. This could include tax rebates, money for infrastructure spending, and additional checks directly to individuals. These measures have been supported on both sides of the aisle by President Donald Trump and House Speaker Nancy Pelosi. 

While markets dropped off a cliff when the coronavirus turned into a full blown pandemic, they came quickly roaring back to life at the end of March. The market had its biggest three-day jump since 1931, with the Dow Jones climbing more than 20% in the process. 

This is a very volatile time in the nation’s economy and markets. Now, more than ever, we will continue to monitor the economic climate as it changes over the coming days, weeks and months. 

Please contact our team if you have any questions. 

Warmest Regards, 

David Adefeso

References: 

https://www.cnbc.com/2020/03/26/weekly-jobless-claims.html

https://www.cnbc.com/2020/03/25/stock-market-futures-open-to-close-news.html

https://www.politico.com/news/2020/03/25/whats-in-stimulus-package-coronavirus-149282 https://www.cnn.com/2020/03/25/politics/stimulus-senate-action-coronavirus/index.html https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm 

https://www.marketwatch.com/story/pelosi-sees-phase-4-coronavirus-package-including-additional-payments-to-ameri cans-infrastructure-spending-2020-03-30 

Legal Information and Disclosures 

David Adefeso is the Chief Executive Officer of The Pacific Group. He oversees all aspects of the firm’s operations. Prior to The Pacific Group, David worked as a Wall Street Investment Banker with Wasserstein Perella & Co. and Salomon Smith Barney. There, he executed large and complex merger & acquisitions and corporate finance transactions for some of the world’s largest companies. His client base included Aetna US Healthcare, Magellan Healthcare, Allegiance Corp., HealthSouth, MedPartners, Snapple, Interpool Inc., Indigo Aviation, American TransAir, and BlueCross/BlueShields of California, Kansas City & Missouri. Prior to investment banking, David worked as a Certified Public Accountant. He attended Harvard Business School where he graduated with an MBA. Disclaimer: The views expressed are the views of David Adefeso through the period ending February 28th, 2020, and are subject to change at any time based on market and other conditions. This is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as recommendations to purchase or sell such securities.

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