Sell in May And go away! That's how May is kicking off today with U.S. stocks considerably lower after Apple and Amazon reported mixed earnings. In addition, the White House is threatening new tariffs on China for the country's handling of the coronavirus. "Sell in May and go away" is a well-known financial-world adage. It is based on the historical underperformance of some stocks in the "summery" six-month period commencing in May and ending in October, compared to the "wintery" six-month period from November to April. If there was ever a summer to sell and go away, it might be this one - the enormous stimulus and the reopening of our economy may fend off this phenomenon.
Coronavirus update from Johns Hopkins as of this morning: Here in the U.S., there are 1,095,977 cases of the virus with 63,876 total deaths while 155,737 have recovered. There are 3,329,453 cases of the virus reported worldwide, 234,725 deaths while 1,053,040 have recovered from the virus.
The carnage that has taken place in the labor market due shutdown of the economy after the outbreak of the coronavirus. The unemployment rate could hit Great Depression levels this summer. In the past six week, 30 million Americans files for first-time unemployment benefits. A White House official said the jobless rate could hit 20% by June. In 1933, the rate hit 25%. The White House went on to say that the economic numbers between May and July will be as bad as anything ever seen.
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