The Afternoon Audit
Friday | 6.19.2020

U.S. Stocks Fall Slightly

Catch Up Quick

• An additional 1.5 million Americans filed applications for jobless benefits last week

• Trump told the WSJ that he personally thinks testing for coronavirus is "overrated"

• 74% of Americans say the country is heading in the wrong direction

• Twitter announced that users soon will be able to add voice messages to tweets

• Hilton is cutting nearly 22% of its corporate workforce

• Spotify signed an exclusive deal to distribute Kim Kardashian’s new podcast

• DoorDash raised $400 million in new equity funding at a $16 billion valuation

• A new 2020 Election Poll (Fox News) found 50% of voters favor Biden while only 38% Trump

My Friday Opinions

• With corporations getting huge, multi-year tax breaks and (most) Americans receiving only a one-time $1,200 check, many are criticizing the prioritization of these stimulus efforts— however, the corporate cash benefits are indeed designed to preserve salary expenses and keep payrolls afloat, which flows into taxpayer pockets in the longer-run

• A new Reuters report surveying 9 private banks that oversee roughly $6T in assets for the ultra wealthy unveiled they are advising their clients to increase their exposure to gold— this potential buying action combined with it’s low (even negative) historical correlation to the stock market could make the previous metal an interesting asset to hold

• Cities and states have spent millions of dollars on police overtime over the past few weeks during the Black Lives Matter protests— government budgets were already strapped due to vast drop offs in tax revenues from lockdowns, and this could make it even more difficult for local governments to meet debt obligations

Thought of the Day

• Recent evidence suggests that 30% of Americans missed their housing payments in June, down slightly from 31% who missed payments in May

• However, the housing market has stayed afloat thus far due to a hierarchical chain of forgiveness, trickling down from the federal government down to homeowners/renters

• As it stands, institutions aren't looking to seize houses, as doing so amplifies strain

• But if homeowners continue to miss or delay payments, eventually this tide will turn

The Bottom Line

• Roughly ⅓ of Americans are not able to make their housing payments with stimulus money

• What do you think will happen to this figure come end of July, when stimulus efforts expire with no current extension on the horizon?

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