{"id":7206,"date":"2020-03-26T10:00:08","date_gmt":"2020-03-26T10:00:08","guid":{"rendered":"https:\/\/thezakariagroup.com\/dont-let-frightening-headlines-scare-you\/"},"modified":"2020-03-26T10:00:08","modified_gmt":"2020-03-26T10:00:08","slug":"dont-let-frightening-headlines-scare-you","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/dont-let-frightening-headlines-scare-you\/","title":{"rendered":"Don\u2019t Let Frightening Headlines Scare You"},"content":{"rendered":"
\n

\"Don\u2019t<\/p>\n

There\u2019s a lot of anxiety right now regarding the coronavirus pandemic. The health situation must be addressed quickly, and many are concerned about the impact on the economy as well.<\/span><\/p>\n

Amidst all this anxiety, anyone with a megaphone \u2013 from the mainstream media to a lone blogger \u2013 has realized that bad news sells. Unfortunately, we will continue to see a rash of horrifying headlines over the next few months. Let\u2019s make sure we aren\u2019t paralyzed by a headline before we get the full story.<\/p>\n

When it comes to the health issue, you should look to the Centers for Disease Control and Prevention<\/a> (CDC) or the World Health Organization<\/a> (WHO) for the most reliable information.<\/p>\n

Finding reliable resources with information on the economic impact of the virus is more difficult. For this reason, it\u2019s important to shed some light on the situation. There are already alarmist headlines starting to appear. Here are two such examples surfacing this week.<\/p>\n

1. Goldman Sachs<\/em><\/strong> Forecasts the Largest Drop in GDP in Almost 100 Years<\/strong><\/h4>\n

It sounds like Armageddon. Though the headline is true, it doesn\u2019t reflect the full essence of the Goldman Sachs<\/em> forecast<\/a>. The projection is actually that we\u2019ll have a tough first half of the year, but the economy will bounce back nicely in the second half; GDP will be up 12% in the third quarter and up another 10% in the fourth.<\/p>\n

This aligns with research<\/a> from John Burns Consulting<\/em> involving pandemics, the economy, and home values. They concluded:<\/p>\n

\n

\u201cHistorical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.\u201d<\/em><\/p>\n<\/blockquote>\n

The economy will suffer for the next few months, but then it will recover. That\u2019s certainly not Armageddon.<\/p>\n

2. Fed President Predicts 30% Unemployment!<\/strong><\/h4>\n

That statement<\/a> was made by James Bullard, President <\/em>of the Federal Reserve Bank of St. Louis<\/em>. What Bullard actually said was it \u201ccould\u201d reach 30%. But let\u2019s look at what else he said in the same Bloomberg<\/em> News<\/em> interview:<\/p>\n

\n

\u201cThis is a planned, organized partial shutdown of the U.S. economy in the second quarter,\u201d <\/em>Bullard said. \u201cThe overall goal is to keep everyone, households and businesses, whole\u201d<\/em> with government support.<\/p>\n<\/blockquote>\n

According to Bloomberg<\/em>, he also went on to say:<\/p>\n

\n

\u201cI would see the third quarter as a transitional quarter<\/em>\u201d with the fourth quarter and first quarter next year as \u201cquite robust\u201d <\/em>as Americans make up for lost spending. \u201cThose quarters might be boom quarters,\u201d <\/em>he said.<\/p>\n<\/blockquote>\n

Again, Bullard agrees we will have a tough first half and rebound quickly.<\/p>\n

Bottom Line<\/strong><\/h3>\n

There\u2019s a lot of misinformation out there. If you want the best advice on what\u2019s happening in the current housing market, let\u2019s talk today.<\/p>\n<\/div>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a lot of anxiety right now regarding the coronavirus pandemic. The health situation must be addressed quickly, and many are concerned about the impact on the economy as well. Amidst all this anxiety, anyone with a megaphone \u2013 from the mainstream media to a lone blogger \u2013 has realized that bad news sells. Unfortunately, […]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[99,100],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nDon\u2019t Let Frightening Headlines Scare You - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/dont-let-frightening-headlines-scare-you\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Don\u2019t Let Frightening Headlines Scare You - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"There\u2019s a lot of anxiety right now regarding the coronavirus pandemic. 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