Five more states, including Colorado and Tennessee, are making moves to reopen their economies, bringing hope to investors. After President Trump announced last week that 20 states plan to get back to business, the Dow Jones and S&P 500 have been steadily climbing back, and all indexes are within 20 percent of their record highs in February.
The CEO of financial planning firm Dynamic Money, Chris Burns, told NTD that now is a great time to buy stocks if you can.
“Now is one of the best times ever for people to be investing in the market because everything’s on sale,” said Burns “Do not go after the favorite sector that your mother’s brother’s cousin told you is a good idea. Invest in the whole market. Be widely diversified. And then as the market comes back from the drop we’ve seen, you’ll come back strongly.”
If you have a 401 (k) and are struggling, the CARES Act allows people under 59 years old to take out money without the 10 percent penalty and you can pay taxes on it over 3 years instead of all at once. This is only possible if the employer approves the transaction.
The law allows people suffering hardship from the CCP (Chinese Communist Party) virus to take out up to $100,000 without the fee.
The virus has dealt a heavy blow to the U.S. economy. Jobless claims are staggering with more than 26 million Americans applying for unemployment benefits since mid-March. It is the worst unemployment rate since the Great Depression.
With so many Americans out of work, the rise of the economy may take a while, but the stock market may pick up more quickly.
“Every month that we sit kind of stagnant is getting worse and worse because so much pressure is put on it by the massive level of unemployment we’ve seen so expect the market to possibly rebound relatively quickly comparatively, whereas the economy could take a lot of time to relieve that pressure of so many people being out of work and so many businesses going under,” Burns said.
Burns says the country is divided on whether to reopen the economy. He says some workers are comfortable keeping safe while working from home. But others are protesting against the extended lockdowns, like in Raleigh, North Carolina on Tuesday.
Reuters contributed to this report.
Follow Kevin on Twitter
