Green Shoots Starting to Sprout

Green Shoots Starting to Sprout

June 01, 2020

The Markets

Are those green shoots?

In economic terms, green shoots are signs of improvement. If you were paying close attention, you might have seen some in economic data released last week.

They weren’t apparent in the Bureau of Labor Statistics report on the United States economy. Gross domestic product (GDP), which is the value of all goods and services produced in our country, shrank by 5 percent during the first quarter of 2020. The contraction reflected lower spending by Americans and American businesses due to COVID-19. The Congressional Budget Office (CBO) estimated:

“…from March 21 to March 31, when many social distancing measures were in place, spending may have been down by almost 28 percent as a result of the pandemic; spending on accommodations and restaurants declined by 60 percent to 80 percent; and spending for some goods (such as clothing) dropped by similar amounts.”

Spoiler alert: The numbers for the second quarter are expected to be far worse. However, economic growth is expected to bounce as consumer spending, which accounts for two-thirds of GDP, resumes.

The green shoots were found in unemployment. As businesses reopened and shelter-in-place orders eased, the U.S. unemployment rate dropped to 14.5 percent during the week of May 16 from 17.1 percent the previous week, according to the Department of Labor.

Green shoots were also sprouting from the University of Michigan’s May Consumer Sentiment Survey, which reported “…a growing number of consumers expected the economy to improve from its recent standstill…” The Index of Consumer Sentiment ticked higher from April to May.

The United States experienced highs and lows last week. A NASA public-private partnership launched the Dragon capsule into orbit. Its astronauts are headed for the International Space Station. Meanwhile, down on Earth, protests for justice in the death of George Floyd devolved into rioting.

Major U.S. indices finished the week higher.

Data as of 5/29/20







Standard & Poor's 500 (Domestic Stocks)







Dow Jones Global ex-U.S.







10-year Treasury Note (Yield Only)







Gold (per ounce)







Bloomberg Commodity Index







 S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. 

Sources: Yahoo! Finance, MarketWatch,, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.


FYI: IT'S JUNE!    One side effect of COVID-19 quarantine is losing track of days. When routines are disrupted and recurring activities that distinguish one day from the next are discontinued, it can be difficult to know whether it is Monday or Thursday.

Fortunately, the United States has enough national holidays to clearly delineate one day from the next. Here is a list of some June holidays to help you keep track of days:

June 1: World Reef Awareness Day

June 2: National Bubba Day

June 3: National Running Day

June 4: National SAFE Day

June 5: National Doughnut Day

June 6: D-Day – remembering the day Allied troops landed on the beaches of Normandy

June 7: National Cancer Survivor’s Day

June 8: National Best Friends Day

June 9: National Earl Day

June 10: National Iced Tea Day

June 11: National Making Life Beautiful Day

June 12: National Loving Day

June 13: National Kitchen Klutzes of America Day

June 14: National Flag Day and the Birthday of the U.S. Army

June 15: National Smile Power Day

June 16: National Fudge Day

June 17: National Eat Your Vegetables Day

June 18: National Go Fishing Day

June 19: Juneteenth – commemorating the end of slavery

June 20: Summer Solstice – the start of summer in the Northern Hemisphere

June 21: Father’s Day – celebrating dear old dad

June 22: National Chocolate Eclair Day

June 23: National Pink Day

June 24: National Parchment Day

June 25: National Leon Day

June 26: Take Your Dog to Work Day

June 27: National PTSD Awareness Day

June 28: National Logistics Day

June 29: National Waffle Iron Day

June 30: Social Media Day (As if that were not every day!)

By the end of June, we should be on our way to a new normal and able to use the coronavirus lockdown as a point of reference for tracking events.

Weekly Focus – Think About It

“Whenever any American's life is taken by another American unnecessarily – whether it is done in the name of the law or in the defiance of law, by one man or a gang, in cold blood or in passion, in an attack of violence or in response to violence – whenever we tear at the fabric of life which another man has painfully and clumsily woven for himself and his children, the whole nation is degraded.”

--Robert Kennedy, Former U.S. Attorney General


Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Treiberg Wealth Management, a registered investment advisor and separate entity from LPL Financial. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The DJ Global ex US is an unmanaged group of non-U.S. securities designed to reflect the performance of the global equity securities that have readily available prices.  The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association. The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. This newsletter was prepared by PEAK. Past performance does not guarantee future results. You cannot invest directly in an index. Consult your financial professional before making any investment decision.