Chris Hopkins of Barnett & Company discusses the impact of Covid on the local economy

Chris Hopkins of Barnett & Company discusses the impact of Covid on the local economy

Dial it would take all ... what wouldn't a culture ... it's just as we continue on this monday morning august 30 of some financial issues to talk to about some people are selling i a great time in certain areas o the economy.

Some folks are saying.

Quite the opposite was find out exactly where the trut is with chris hot ends.

Chris is the senior vice president with barnett and company chris hopkins good morning good morning chip how are you today i'm doing very well chris, we hear everything about the economy literally in every 360 degrees of the circle, noted gross domestic product is taken the big dive and the biggest one in history.

Phyllis seven tell us exactly what that me here to answer your question is yes.

I mean, it's good and were struggling both self first step is the gpd measure of the output for the us economy declined by about 33 percent on an annualized basis.

Year-over-yea biggest biggest decline in the best canada bad.

The good news is we expected that we knew that was going to happen once we shu the economy down to try to deal with the hope it operates so wasn't a big use of right.

It was so no still pretty shocking number but it looks like were beginning to climb out of the whole semester.

First thing is it was pretty big and it looks like maybe by first quarter of next year or maybe second quarter will be back at about the same level that we started in january, so that's good news what is the proving that prudent investor done when they saw this coming on and where should they be now is a great question.

So if you had cash, the best thing done was put in about march or april of when everybody was running away when the market was down.

Now we've learned that lesson over and over again.

If you were in cash and you are already fully invested in the best thing you could've done wa nothing too late to react.

Once you have the big decline in as we always say the best.

If you have a long-term plan reasonable asset allocation.

You stick wit it in and frankly beyond the broad index is earliest, the 500 really very close to where we started the year so the same advice applies over and over again how land stick with the plan.

Don't panic.

Also at the bottom and time will take care of housing is in the housing market now is just probably the best it's ever money is cheap.

Sales are strong, refinancing i taking hardly any time at all and were seeing record time of house for sale pell sold house closed new family get tell us about the not exactly set up actually a real bright spot in the economy is been the surgeon housing market.

The young, the june numbers will have july and june numbers were up 21 percent year-over-year.

The same month the year before.

Of yes you are exactly right were at historic lows.

You cannot get your mortgage with credit of below three percent.

Now you probably remember the days of 14 percent mortgages right refi asked down to 10.

We felt we had age so this is the remarkable time so housing is try one of the reasons that really matters is that of the housing industry.

Whether it's mortgages its construction.

Sales insurance adds up to somewhere between 15 and 20 percent of the us economy.

Significant contributor to the growth the economy so strong housing marke is uneventful.

This is very goo news that the market strength is has really continued and surprised chris only have 60 seconds or so less, but i wante to get this app you're seeing signs everywhere about institutions by coins because o cold and so were looking at a national point shortage right.

I'm not sure what to think abou all this wealth started out toilet paper then you went to meet them.

Our coins will affec his big thing about you shut the economy down so everybody stays home so they're not a lot of not know they're not the vending machine and so forth that the circulation of coins in the economy declined dramatically because it economic activity close to you and i would probably say okay so what's the big deal is use your atm well about 20 percent of americans don't have a bank relation and they will have access to any kind of touchless transaction so the fact of the matter is not technically a shortage of coins but the circulation declined so rapidly to temporary right chris like you so much for sharing your time and expertise with us is