Originally Posted by
GoneMissed
I think you and I are on the same page.
I was cautiously optimistic in late February. Was no longer beginning in April. This will be bad and get much worse before it gets better. I hope I am 100% wrong for all of our sakes
The US economy, and related GDP, are comprised of various parts but consumer spending is agreed to be approximately 2/3 of GDP. You can't take this much unemployment without drastically affecting GDP and the Markets. Wall Street and Main Street have been disconnected for some time. However the recent rise in the S&P and other indexes from the sharp drop of March will not last. There needs to be something other than government handouts to prop up the market.
When the market drops again, there will follow a shake out in the 135 world. That's where the upper .05% have their money. If you have an airplane on a managed /135 certificate and the market tanks badly, many will have to raise cash. I think the reason that there has not been a flood of aircraft on the market is because the Financial Markets are holding up well. However they are being held up by FED stimulus. When the real unemployment and loss of real GDP hits home the Markets will fall and the wealthy will be trying to raise cash.