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Paul Meeks

Paul Meeks

Paul Meeks Weighs In On The Delay of The Next Stimulus Bill and The Current Market

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With less than a month to the election, I’m not worried about it, or at least not directly. I’m focused on the Congressional logjam that has prevented passage of the second stimulus bill aka the CARES Act II, or whatever the next stimulus bill is to be called. If I were to handicap it, I’d bet that the Democrats take the White House and maybe tilt the balance more in Congress’s favor. Then Pelosi and Schumer likely will get their trillions in fiscal stimulus rather than settling for less. I’m usually a fiscal conservative, but with GDP having contracted by a third (annualized) in the second quarter, and with that haunting us should America be forced to shutter again, I think that we almost can’t err with too much support. I live in a red state (South Carolina) and work with a Republican-leaning firm (Independent Solutions), but that’s what I forecast and hope for (i.e., fiscal stimulus on par with March’s stimulus bill).

As to the market, I’m still cautious given the uncertainty, but I’m prepared to invest aggressively when the coast is clear, or after stocks have taken another beating to reflect the worst. Over the long term, I’m looking to ride the bull. Equity prices only point in that direction with interest rates likely to be pinned to the floor for years, which I believe will be for a lot longer than the Fed promises (i.e., through 2023). Get ready to party but wait a bit longer!

Check out my other blog; Portfolio Manager Paul Meeks Sees Another 10% Downside in Tech Stocks as well as our recent feature in the Wealth Management Magazine for the 2020 Midyear Outlook for additional details.

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All opinions expressed Paul Meeks are solely Meeks’ opinions and do not reflect the opinions of Independent Solutions Wealth Management, LLC (“ISWM”). You should not treat any opinion expressed by Meeks as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. Meeks opinions are based upon information he considers reliable, but neither ISWM nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Meeks, ISWM, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Meeks statements and opinions are subject to change without notice. No part of Meeks compensation from ISWM is related to the specific opinions he expresses. Past performance is not indicative of future results. Neither Meeks nor ISWM guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from an investment adviser.

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