Prepared by Well Fargo Investment Institute.
How a New Federal Law Aids the Economy
- On March 27, 2020, Congress passed and the president signed into law
the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which
provides economic support intended to be quickly available to workers
- The law is innovative in targeting aid as quickly as possible to individuals
and businesses, and for how it works with the Federal Reserve to
support the U.S. financial system.
What it may mean for investors
- Whether the CARES Act is sufficient to end the selloff still depends
upon the pace of infections. We continue to believe that some equity
market consolidation is likely, including the possibility that the S&P 500
Index may retest its recent lows.