So, are you struggling, as I am, to keep up with the news cycle? Significant events seem to be happening so fast that it’s hard to keep up. Last weeks’ headline is old news now. It’s interesting how much I hear from people that they are just “turning it all off” and looking inward. That’s probably healthy, but it also filters out important issues with either good or bad long-term consequences.
With that backdrop, let me make a summary statement that I think is important as you reflect on your investment account. It seems “credible experts” agree that near-term risks for stocks remain high. At the same time, they also seem to agree that global market prices (especially the U.S.) will be higher a year from now. So, can you hold your breath for a few months and focus on something else? Hard to do! It will be easier if you have a sense of comfort that a Trusted Advisor has listened carefully to your goals and objectives, positioned your investments accordingly, and is monitoring the blur on your behalf.
In the meantime, just imagine the impact a successful vaccine will have. I mean one that has been given time to prove that it works, and people are back to “normal” lives. I’ll probably continue to wash my hands incessantly regardless. Hard to break habits. It is helpful to know that the Federal Reserve has been steady and consistent in seeing us through this bumpy time. Also, there are good odds that some sort of financial stimulus (government funds pumped into the economy) will be agreed upon. Those possibilities might can give you hope that we just need to be patient for a few more months.
Here are some interesting facts you can share with those around the coffee pot. For example, there are an estimated 19.7 million college students (undergraduates and graduate students) attending college for the school year that began in the fall of 2020. News reports lead us to believe they were all sent home after COVID-19 spreading drunken parties. Not so. That is just a 2% drop from the prior school year. On the other hand, the pandemic has pushed the percentage of adults age 18-29 living with a parent to 52% as of the end of July 2020. That same number, according to the Pew Research Center, was 46% in January of this year prior to the first pandemic related death. “Failure to Launch” is nothing new, but obviously about 6% of that group moved back home. It is no surprise that this economic slowdown has been difficult for young adults trying to establish the front end of their careers.
As a final note, recently a friend introduced me to two very interesting things that could have a meaningful impact on you. One, “Newsy” on ROKU is a news channel that is seemingly not slanted to the left or right. Just imagine the CNN crowd not being in a position to exchange insults and argue over “fake news” with the FOX crowd. Hard to imagine but seems to be true.
A second reportable topic is a movie/documentary entitled “Social Dilemma”. For people (like me) who are not so much into social media it is a real frightening eye opener. It details the control social media exerts over children’s minds, our buying habits, event the Democratic process. How are our thoughts controlled without our knowledge? In fact, on October 28th, the CEOs of Facebook, Google, and Twitter are expected to testify before a Senate hearing on the topic of the tech companies’ control over hate speech and misinformation on their platforms. This is very significant. By the way, what companies have dominated the stock market this year? Those big tech companies. Stay tuned.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal.
Visit us at www.williamsfa.com. Tommy Williams is a CERTIFIED FINANCIAL PLANNER™ Professional with Williams Financial Advisors, LLC. Securities offered by Registered Representatives through Private Client Services, member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through RFG Advisory, a Registered Investment Advisor. RFG Advisory, Williams Financial Advisors, LLC and Private Client Services are unaffiliated entities. Branch office is located at 6425 Youree Drive, Suite 180, Shreveport, LA 71105.
Read More: Keeping up with the news cycle