Millennials Have The Same Net Worth As Boomers

The real improvement was from retail as 91% of free-standing retail paid its rent which was up from 73% in April. As more stores opened up, more paid rent. Obviously, if the problem was deeper than just the closures, they went belly up. Usually, in recessions the worst firms go bust, while the rest survive. Any business that was in great financial shape and was doing well probably survived this crisis.

Retail shopping centers saw a 30% increase in rent payments to 80%. Malls have been hit hard by this crisis as America has too many of them. The c-rated malls are in deep trouble of closing. Even the b-rated malls were questioned during the worst of this crisis. As we mentioned in a previous article, retail mostly avoided bankruptcy because of the risk hungry debt market. Investors are leaping to the conclusion that physical retail and offices won’t be nearly as needed even after this crisis is over. That largely depends on how long we are forced to live cautiously.

The Pain The Recession Caused

The stock market is mostly ignoring the prospects of a stimulus besides small cap value stocks which are more affected by the economy. However, the stock market doesn’t tell the whole story of the crisis. As you can see from the graphic below, 33% of adults used money from savings or their retirement since the COVID-19 outbreak started. Obviously, there is a big difference between the two. Tax penalties on taking money from retirement accounts were lifted. However, that just kicks the can down the road because eventually, people will need to retire. When you take money out and return it gradually, you lose all those years of compound gains. The worst case would be if someone took their money out in the spring when the market was much lower.

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