June 2020 Market update – What is going to happen in the economy?

When is the economy going to recover?  This is a question we keep getting from the community.  What’s going to happen to our economy here in Brentwood Ca 94513, and Oakley Ca, 94561. Well as always, I don’t like to give my opinion, but I like to look at what the experts are saying about the GDP. Well, let’s dive into what four of the major financial institutions are predicting and how they typically predictit how our economy is doing.  The economy is often measured based upon the GDP.  The GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.  The results of the first quarter have already come in, and we see the GDP being a negative 4.8 four point eight.  According to the four major financial institutions, Goldenman Sachs, JP Morgan, Morgan Stanley and Wells Fargo all 4 predictions for a 2nd half of the year for the GDP to continue to go down.  However, for the 3rd quarter, 3 of the 4 institutions predict that the GDP will go up as things start to open up, more businesses are operational  and we have less restrictions.  Also, it’s good to know that ALL of the four major financial institutions predict the fourth quarter to show positive economic recovery.  We need to think about how Economists analyze the recovery and what they compare it to in order to make predictions.  In the past typically economists would look at the Business Science of the economy, meaning…how has the economy rebounded from similar slowdowns in the past to make their predictions.  However, now due to what’s happening, they also have to look at other Sciences, one of which is a Health Science.  They now need to consider when the current situation we are in now, when will it be under control and will we have a possible flareup in the fall.  Also, Economists now need to look at the People’s Science.  Meaning, once businesses are operational, how long will it take the American Consumer to return to “Normal” consumption patterns, meaning doing things like eating out at restaurants, going to the movies or sporting events, or traveling etc.  So taking all of these factors into account as they are making projections about how the economy will recover makes it a bit more difficult than in the past, they can’t just look at the Business Science.  One thing that is good is that none of the four major institutions are not calling for a “L” recovery, meaning the economy is not going to go down and stay down.  They are all predicting the economy to start to recover in the second half of the year as businesses open back up In a “V” recovery..   So,  according to the Experts they’re predicting the economy to go up in the second half of the year.  Please feel free to reach out to us anytime here at Homes By Krista your local Digital Community Market Leaders to ask questions or if you just need some advice about what to do in regards to buying or selling your home in East County, Brentwood California 94513 or Oakley California 94561. And as we are always here to help.  Make it a great home buying and selling day.

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June 2020 Market update - What is going to happen in the economy?
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