Wow, isn’t this a fun time to be alive or what?
Lots to talk about, let’s Dive in.
The Election –
Who will win? I have no idea. Here’s what I do know, Polls are confusing. Regardless of who wins, we feel the election results could be delayed. Hopefully it will resolved by the end of November, but this could be stretched out. Watch these states: Arizona, Michigan, Pennsylvania, Wisconsin and North Carolina. These will be your true indicators of the direction this election is going.
Covid 19 –
The WHO (World Health Organization) recently urged world leaders to “stop using lockdowns as your primary control method”. Obviously, the virus is still a concern and everyone should use caution and be smart. Many Drug and Biotech firms are working diligently on vaccines and cures. The goal is to see something by end or year or early 1st quarter, 2021. There is a lot of false information out there, so be selective and cautious of what you read and believe.
The Economy –
The Economy is getting better. Obviously, we are in a crazy time with Covid19 and the Election and they are all factors. However, the biggest factor is the opening up of States and businesses. We should see GDP numbers at the end of October for the 2nd qtr and we expect to see a 35% tic up. That’s good, but it’s good because the last two quarters were awful. A few signs are helping us be optimistic. TSA is reporting travel numbers are rising in both Corporate and personal travel. Open Table which track dining is also seeing a significant rise in numbers. People are starting to move around. The real estate markets are indicating that people are moving out of cities and heading to the suburbs at an astounding rate. In some states, it’s upwards of 40%.
As demand rises and production is still staggered, we may see a rise in prices for most goods and services, thus we start to see inflation. Time to think about inflation protected positions in your portfolios.
The Markets –
We are currently expecting an 80% earnings beat by all S&P companies reporting. This is primarily due to low expectations and those companies never closed their doors. An advantage the smaller retailers and stores didn’t get. The fundaments still suggest that the S&P 500 index is still undervalued and has room to grow this year and next. Expect volatility as we head into the election and especially if we do not see a clear winner within the week following. As for policies effecting the markets, we will have to wait and see which person and parties are in control and we can take action accordingly.
Feel free to contact me with any concerns, questions or if you just want to say Hi. I love what I do and can’t wait to see what happens next.
Enjoy the rest of the year, get out and VOTE and always: “Live, Plan and Invest with a Purpose”
Jeffrey A Rittner, CFP®
Certified Financial Planner
jrittner@cfiemail.com
125 South Howes St. | Ste. 910 | Fort Collins, Colorado 80521 | Office: 970.416.0088 | Fax 970.416.0087 | www.legacyfinancialcolorado.net
Jeffrey Rittner, CFP® is a Registered Representative / Advisory Associate offering securities and advisory services through Centaurus Financial, Inc. member FINRA/SIPC,
and an Investment Advisor Representative, Legacy Financial and Centaurus Financial, Inc. are not affiliated.
