by Maurice (Mo) Spolan, Investment Research Analyst
Stocks were roughly flat last week as COVID-19 cases surged in each of the nation’s three most populous states: California, Florida and Texas. According MFS Investment Management, high-frequency data such as retail foot traffic and credit card spend suggest that consumers have pared back activity over the past couple of weeks. This is consistent with the fact that approximately 30 states have recently reversed reopening measures. In addition, the $600-per-week unemployment benefit is set to expire at July’s conclusion, layering on further uncertainty as to whether congress will pass more stimulus to keep the economy stabilized.

Economic activity recovered faster than expected during May and June, however, data appears to show such a recovery now slowing in July as consumers act with greater caution in light of surging case-loads. Economic uncertainty remains extremely high, while unfortunately, the outlook from a health perspective is a bit more concrete: the coronavirus will remain a major impact on society until a vaccine is widely disseminated or a highly effective treatment is concocted. The unpredictability associated with the ongoing economic and financial climate illustrate why adherence to one’s long-term savings objectives is almost always the best way to invest.