This article gives an update on the top 5 indicators that show the market is back on track.
- Flattened Curve
First and foremost many experts have indicated a flattening of the curve.
- Stay-At-Home Orders Being Lifted
Additionally, stay at home orders are being lifted. As of this article, all 50 states are working towards lifting statewide restrictions.
- 10 Year Yield goes above 1%.
This hasn’t happened yet, however, since the start of the recession, the 10 year has been above .62%. This makes sense if you assume the bond market is expected to rebound in Q3 and Q4. - Decline In Credit Stress And Jobless Claims
The degree of financial stress spike aggressively in March and has since begun to decline. - Data From The Hardest-Hit Sectors Start To Trend Upward
Dining, lodging, and travel are all beginning to bounce off the bottom and move higher.
“For the housing market, purchase applications were one of the hardest-hit segments and thus are a sensitive metric to watch for potential recovery. From the peak rate of growth on purchase application to the lowest year-over-year decline, we have had a 52% move lower in 2020. Year over year, purchase applications fell as much as 35% in the weekly reports. Since that nadir, purchase applications have been showing smaller and smaller year over year declines, with the last report showing only a 1.5% decline from the same period of the previous year. We may even see the first positive year over year print this week! Because housing is such an essential sector to the overall economy I am more than a little excited by this trend.”