{"id":454,"date":"2020-11-02T00:00:00","date_gmt":"2020-11-02T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2020\/11\/02\/our-economic-reality\/"},"modified":"2020-11-02T00:00:00","modified_gmt":"2020-11-02T00:00:00","slug":"our-economic-reality","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/our-economic-reality","title":{"rendered":"Our Economic Reality…"},"content":{"rendered":"

Markets Take It on the Chin<\/strong><\/p>\n

Not too many places to hide last week as stocks and bonds lost value.\u00a0 All US Stock Market Indexes fell over 5%, as did International Stocks.<\/strong><\/p>\n

Our 10 Year US Treasury finished the week with the yield rising to .86%, the highest since June<\/strong>.<\/p>\n

Is the reason the upcoming election<\/strong>, no stimulus<\/strong>, the economy or the Coronavirus<\/strong>?\u00a0 Certainly, most tend to agree, it\u2019s all of the above!!\u00a0 At least most of us can agree on one thing!!\"\"<\/p>\n

With that said, volatility should have been expected, and should continue, until these significant issues start to wind down.\u00a0 Hopefully, election results will be known this week so we can put one issue behind us.<\/p>\n

Economic Reality<\/strong><\/p>\n

The good news is that GDP<\/strong> snapped back better than expected in the 3rd<\/sup> quarter, clocking in at 33.1%.<\/strong>\u00a0 Initial jobless claims, that are announced weekly, are continuing the trend downward with new claims last week coming in at 751K<\/strong>, the lowest since March.<\/p>\n

In the 3rd<\/sup> Quarter, spending on \u201cgoods\u201d increased 59% annualized<\/em> which is significant.\u00a0 Even at home, you could purchase a washing machine, lawn mower, Peloton exercise bike.\u00a0 I believe the 2.2 Trillion Dollar Cares Act stimulus was a major contributor.\u00a0 The issue however is that you probably won\u2019t buy another washing machine or exercise bike anytime soon.<\/p>\n

Our \u201cservice\u201d sector historically accounts for 60% of GDP<\/strong> and a higher percentage of overall employment in the United States.\u00a0 Recreation, Travel, Dining and various forms of entertainment are critically important to our economy.\u00a0 Until we are able to resume these activities, you should expect the economy to not fully recover.\u00a0 This is<\/strong> the unemployment issue!!<\/p>\n

So how do we resume participating in the fun parts of life?\u00a0 Seems to me, the Coronavirus will still be an issue even after we have a true vaccine, as it will take time to circulate throughout the world.\u00a0 When listening to CNBC this morning on my way in, it was suggested that developing tests that immediately provide results at restaurants, at airports, at ball games may be the solution.\u00a0 Perhaps wearing a mask as you arrive, until you test negative will be the policy.\"\"<\/p>\n

Sound reasonable on the surface!!<\/p>\n

Because we cannot see an end, for now, it\u2019s extremely important that another economic stimulus package be passed, geared towards the areas that are still suffering because of the Coronavirus.\u00a0 Congress will certainly have the opportunity to pass future spending that will address other issues that are not significant in the short-term.\u00a0 We need the most cost-effective \u201cbridge\u201d until we can see clear.\u00a0 \u00a0After this is behind us, \u00a0we\u2019ll really need to deal with our finances!!!<\/strong><\/p>\n

Next Week\u2019s Blog?<\/strong><\/p>\n

\u00a0<\/strong>I can only speculate what I\u2019ll write about in next week\u2019s blog.\u00a0 So much can happen with the election that will impact so many areas.\u00a0 I can\u2019t wait to put in my 2 cents!!<\/p>\n","protected":false},"excerpt":{"rendered":"

Markets Take It on the Chin Not too many places to hide last week as stocks and bonds lost value.\u00a0 All US Stock Market Indexes fell over 5%, as did International Stocks. Our 10 Year US Treasury finished the week with the yield rising to .86%, the highest since June. Is the reason the upcoming […]<\/p>\n","protected":false},"author":3,"featured_media":455,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[73,7,21,9,27,13,31,18],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/454"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=454"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/455"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}