Countless businesses have scaled back or even closed during the COVID-19 pandemic, leaving us all to wonder: will we ever recover?
We will recover, but we have a long road ahead of us. The economic effects of the pandemic have caused many to lose confidence in rebuilding. On top of that, it seems as though we have another round of discouraging news every day. However, there are positive signs all around us to keep our spirits up and our eyes looking forward. Here are six encouraging signs that keep us hopeful.
Positive Trends Are Beginning to Emerge
We’ve all searched for signs that the pandemic could be coming to a close. According to the CDC in July, the percentage of deaths attributed to pneumonia, influenza, or COVID-19 decreased from 8.1% during week 27 to 6.4% during week 28, representing the twelfth week of a declining percentage of deaths due to PIC. While the percentage is still currently above the epidemic threshold, there is a chance it can change as more death certificates are processed.
States are Beginning to Reopen Their Economies
States across the country have begun to deploy reopening plans, giving their residents a returned sense of normalcy. We’re seeing a positive response from the market, even as businesses open at lower capacities and follow social distancing guidelines. Devastated industries such as food, hospitality, travel, and real estate, are all seeing an increase in their numbers, giving us hope that they can now begin to recover.
People are Helping Everywhere You Look
In any crisis, it’s always encouraging to look for the helpers. Fidelity Charitable recently held a survey to understand how COVID-19 would affect charitable giving. The survey found that 25% of donors planned to increase donations, while 54% of donors planned to maintain their giving levels. Since the beginning of the pandemic, 10.9 billion dollars worth of grant funding has been distributed.
Of course, charity work is more than financial. There has also been a significant rise in volunteers across the country who have donated their time for everything from grocery runs for the elderly to working in coronavirus testing centers for underserved communities.
Changes to the PPP Loan Will Help Small Businesses
After releasing the CARES Act, a 2.2 trillion dollar relief package, the federal government is loosening restrictions on the package’s Paycheck Protection Program (known colloquially as the PPP Loan). Small businesses were struggling to make the previous conditions work to their advantage. In response, the House has passed a bill to modify the loan’s restrictions, allowing small business owners more flexibility in how and when they spend the funds.
Gas Prices Are Down
Though they’ve begun to rise, gas prices were the lowest they’ve been on Memorial Day weekend since 2003. These prices are providing relief to families who are struggling financially as well as motivating others to travel—safely—for day trips and outings, helping to stimulate local economies.
Historically Speaking, We Will Bounce Back
In past financial crises, when the S&P 500 dropped more than 10% in the first quarter, it has created an environment of growth for the remainder of the year. According to Larry Adam, Chief Investment Officer of Raymond James, 83% of the time the market has rallied after a drop, it was up by 40%. History tells us that we will ultimately come out of this time stronger than we went in.
Are you hoping to strengthen your finances in this market? Contact us today to discuss how we create a sensible strategy to reach your highest financial goals.
