This week marks the transfer of power to a new democratic administration making the democrat party the majority party in the 2 elected branches of the Federal Government in Washington DC. The prognosticators are in high demand and it’s hard to read a business journal or watch a business channel on TV without someone predicting what 2021 and beyond might look like. Attached is an article of the top 5 things to watch in the markets as democrats become the ruling party of the elected levers of power created by our constitution.
One thing I do know that is going to happen is there’s going to be a lot of money flowing from Washington. The president-elect has proposed another $1.9 Trillion stimulus package adding to the $900 Million and the $2.4 Trillion packages already passed. And there is no doubt a blowout infrastructure bill will hit the market at no telling what cost. To top it off, Berny Sanders, the socialist senator from Vermont, is now chairman of the Senate budget committee and has publicly stated he is not worried about the deficit. So look for more income redistribution legislation being proposed.
I’ve also attached an article about 4 common elder scams and how to stay safe. There isn’t a day go by that I don’t get an email telling me I’m a beneficiary of some humongous amount of money. All that is required is to click on…, whatever and the riches will follow. As I mentioned last week’s email, I will be offering webinars to clients, potential clients, and friends and one of my first will be how to hack proof your life. As I have said many times, we are no match for the crooks and they so far out power us with technology we are at their mercy. Stay tuned for this one.
As far as the equity markets are concerned, value investing is cycling back into the investments of choice. Value companies are companies that offer attractive share prices, offer dividends and are in areas that may actually perform better in an inflationary period. These types of companies are well represented in our portfolios. So, should you have any questions or wish to speak with me, please call or email so we can put something on the calendar.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.