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The Great Resignation

This term emerged because of the huge shift in the workforce since the pandemic began in March 2020. The initial shock to the world of work was massive layoffs as businesses shut down across America. Massive federal government intervention held back some of the economic disruptions in households and businesses.

The course of the pandemic

So many twists and turns, unintended consequences, mysteries, successes, and failures in the course of the pandemic. We know that massive monetary and fiscal intervention reversed a steep decline in the stock market and economic paralysis. In some senses, that was one of the easiest parts of decisive government decisions.

Addressing the Deficit

Yes, this has been seriously suggested as a solution to raising the debt limit. This would not be just any coin-not even a gold coin-but a Platinum coin.

Stocks and TINA

We talked to a prospect this week about investing in the stock market and he said that he is very nervous about all the uncertainty and lack of confidence in the markets. My response was “when did you not feel nervous about the stock market?” He laughed, agreeing that we are always worried about markets.

Converging Crises and Looming Shutdown

Advice for this week is to take a deep breath and drink lots of water! So many converging crises that it is challenging to pick just one! It seems that the crises are never ending since the financial meltdown. The difference this week is the stock market is taking note.

Markets, Poverty Rates, and the Recall

Headlines last week discussed the change in the financial outlook of Social Security. The link below digs deeper into the methodology and impact of this analysis.

Low Interest Rates and Reduced GDP Estimates

With interest rates staying so low throughout the world, the attraction of riskier assets such as stocks remains high. An example of this attraction to risk is in the European markets where junk bond yields are lower than current inflation rates of 3%.

Tax Benefits and Social Security Shortage

Opportunity always lurks in bad events. Example, buying stock both in 2009 and 2020 during bear markets has paid off and is still paying off today. It was not easy to buck the crowd because one of our behavioral biases is that whatever is happening now feels like it will happen forever. During the beginning of Covid, it was hard to see us emerging from the pandemic.

The Fed and Covid-19

This week opened with the NASDAQ index hitting a new high in a rebound from the previous week's decline. Last week, economic growth was called into doubt by the Delta variant as well as economic estimates that fell short.

Vaccine Booster Is On Its Way

A new week, a new set of crises. Rising to the top is Afghanistan and American troop withdrawal. In addition, we have the Covid-19 Delta surge and its impact on health, travel, and the economy. This displaced Andrew Cuomo, the Governor of New York and the January 6th Congressional investigation.

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