Thread by @SRuhle

THREAD:

As we look at the “year that was”.... When the WHO declared Covid-19 a pandemic, markets went into free fall. A few days later on Monday, March 16, 2020, markets had their worst day of the pandemic.

S&P fell 325 points (-324.89) nearly 12%.

The Dow lost nearly 3,000 points (-2,997.10) nearly 13%.

The Nasdaq lost over 970 points (-970.29) nearly 12%.

Markets continued to struggle as states shut down, with hardest hit industries like travel & hospitality laying off thousands and suffering huge market losses.

Conversely, tech-giants enabling work-from-home & e-commerce behemoths/essential retailers soared.

While the CARES ACT focused more on individuals, smaller businesses and some industries, rescue actions from the Fed Reserve included keeping rates at zero and buying up securities which provided both a safety net and major boost to the stock market.

And while we did see hundreds of thousands of small businesses close over the last year and 9+mm Americans slip into poverty since the spring, the stock market has had an extraordinary run.

For those who could work from home and unable to spend disposable income on travel, entertainment, normal planned expenses, Average family savings went up significantly throughout the year, now more than 20% of disposal income.

As of this morning, the Dow is up 37% from a year ago. The S&P up 42%. And the Nasdaq is up 62%.

Biden’s #AmericanRescuePlan aims to correct this pandemic tale of two economies. But as of today, those in the “professional sector” have experienced a year of increased financial security while those in working class, paycheck-to-paycheck communities have had a year of despair.