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Homeowners Worried About Loans

According to Johns Hopkins’ Coronavirus Resource Center, 353,692 cases of Coronavirus around the world and 15,430 deaths have been reported so far, leading many Americans to worry about their finances. Among those surveyed by LendEDU, 54% of all Americans are concerned about their mortgage, and that number jumps to 96% among those that have already lost their job.

“Widespread delinquency or default would have severe implications on the economy at large,” LendEDU states. “In an attempt to combat this, we have seen the Trump Administration waive further accruing interest on student loans and suspend all evictions and foreclosures until April for FHA-insured mortgages.”

Additionally, of the respondents who stated that they were actively invested in the stock market, 79% stated that they have lost money. However, according to JPMorgan, stocks may be able to bounce back. According to Dubravko Lakos-Bujas, Chief U.S. Equity Strategist at JPMorgan, the S&P 500 can reach 3,400 in early 2021, as long as U.S. efforts to contain the coronavirus outbreak work. In a letter to clients, Lakos-Bujas wrote that he expects the S&P 500 to reach 3,400 in early 2021.

“Acknowledging that equity markets globally are now down 30-50% from their recent highs, and that investor positioning has become increasingly favorable, we see an asymmetrical return profile for equities with upside significantly higher than downside over the next year,” Lakos-Bujas wrote.

CNBC reports that for this scenario to play out, the U.S. government must pass a “comprehensive fiscal package promptly.”

“Aggressive fiscal policy needs to be undertaken immediately,” Lakos-Bujas said, noting that failure to pass such measures “would likely result in a broader capitulation of equities including the heavyweight momentum stocks.”

S&P Global Ratings believes the effects of the COVID-19 pandemic have likely pushed the world economy into recession, dragging full-year GDP global growth down to just 1-1.5%.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.

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