New proposals are being made each day which makes forecasting impossible.

Economic forecasting is worthless at this point. While first quarter Real GDP may come in at better than expected levels, second quarter data is unknown. There is little reason to guess at the economic impact of current conditions. We have seen some forecasts of 10 or 20% drops in Real GDP for the quarter. We have seen some forecasts that new claims for unemployment released on Thursday will jump from 211,000 two weeks ago to 2 or 3 million this week. What would these kinds of numbers mean for banks or financial markets? We do not know, nor does anyone. There is news each day, which makes any forecasts impossible. Just today, the Fed announced new QE programs to support credit markets.

 

PROBANK AUSTIN ADVISOR - MARCH 23, 2020