And that’s a wrap on Q1. As we close out a quarter for the history books, let’s hope there are better days ahead in Q2. The recent equity rebound may have convinced some optimists out there, but with confirmed cases of Covid-19 continuing to climb and the White House warning us to brace for a “very painful two weeks,” we fear any celebration may be premature.

U.S. businesses are scrambling for liquidity in an increasingly arid market. Corporate loan balances have surged by the highest percentage on record and investment-grade bond issuance has also spiked—but could so much additional debt send us careening toward another credit crisis?

Unemployment spiked at an unprecedented rate (and to historic levels) this week as layoffs and shutdowns pick up steam across the country. Corporations are borrowing heavily to ride out the crisis, with new loan totals reaching $200 billion in just the past few weeks. But could carrying so much additional debt spell trouble for the future?

There’s been a lot of talk about recession lately, and the sharp drop in global staffing will certainly factor into the equation. Given the speed with which this has all unfolded though, could the recovery be just as speedy? The Fed’s doing its best to ensure just that and released a sweeping plan to prop up the economy that includes unlimited asset purchases (re: QE) and various additional liquidity provisions.

As stocks come off their worst week since 2008, Washington’s failure to produce a stimulus package and the spread of increasingly strict containment measures are putting increasing pressure on global markets. The S&P 500® Index broke through downside support and is now down over 30% from it’s all time high on February 19th.

Stocks may have had a relatively stable day yesterday (by recent standards, anyway…) but a look back at history shows that we’ve so far only wiped out 1.3 years of gains, and—coming off the longest period of economic expansion on record—that means we have significantly more room to fall. Given the recent surge of unemployment claims—this week saw a jump of 70,000 and next week is projected to be worse—and the Fed’s recently adopted Sahm rule, it’s more than enough to signal an approaching recession.

Market swings are still coming at a breakneck pace as investor fear drives the VIX to record highs. Markets were slightly higher yesterday on the hopes of additional stimulus as the Fed, along with other central banks, continue throwing everything but the kitchen sink at the economy. Is there space in your mailbox for a $1,000 check? But the market quickly changed course, enough so that circuit breakers kicked in yet again today.

It’s been what feels like a lightning-fast switch from the economy enjoying its longest and slowest period of growth to setting new types of records… Last Monday was the market’s worst day since the financial crisis, Thursday anted-up with the worst day for the market since 1987, and this drawdown has set a land-speed record for the fastest 25% drawdown in the last century.

In a surprise (and rare—this marks the first since the financial crisis) inter-meeting move, the Federal Reserve issued an emergency 50-basis point rate cut yesterday to help stabilize the markets. It provided a short-lived boost, but the markets plunged again by the end of the day to erase much of Monday’s rally…

While we’ve seen some recovery since Monday’s massive day-long rout, it’s been anything but smooth sailing in the markets this week. Volatility has surged—with the S&P 500 index moving a cumulative ~15% in one day—as investors struggle to make up their minds about the state of the economy.