In today’s Steady Investor, we look at key factors that we believe are currently impacting the economic recovery and what could be next for the markets such as:
Shopping for Thanksgiving Dinner May Look Different This Year – Thanksgiving in general may look different this year, with limitations on gatherings and with some families unable to travel for the holiday. The menu may also look different, as grocery stores grapple with supply chain issues and as consumers shift preferences. Grocers this year are reportedly stocking smaller turkeys – 12 to 14 pounds versus 16 to 20 pounds – in anticipation of smaller gatherings, and many grocers are worried about low supplies of canned vegetables, baking ingredients, and other necessities like pie trays and paper towels. Tight supplies and firm demand may mean higher prices at the register, particularly if consumers are forced into making similar choices based on availability. Prices may also feel a bump as many grocers and suppliers take on the additional costs of supplying protective equipment for workers and following stricter sanitation protocols. Indeed, the research firm Nielson reports that the cost of a typical Thanksgiving meal is expected to rise 3.7% from a year ago, to about $55.27. Normally, the cost of Thanksgiving dinner rises about 1% to 2% per year.1
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How to Protect Your Retirement as The Market Fluctuates
Investors may not know where to invest during this unpredictable time. One potential solution is a portfolio invested in stocks with a strong track record of dividends and dividend growth. This may give investors the potential for a stable and predictable source of income in retirement.
To learn more about how to use dividend-paying stocks in your strategy to potentially generate cash flow for retirement, check out our guide “Retirement’s Uphill Battle: Generating Income in a Low Interest Rate Environment.”
If you have $500,000 or more to invest, click on the link below to get our free guide today!
Retirement’s Uphill Battle: Generating Income in a Low Interest Rate Environment.2
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15 Asian Countries Strike a New Trade Deal – In a deal that took years to complete, the Regional Comprehensive Economic Partnership, or RCEP, includes some of Asia’s most stable and growing economies – from Australia and New Zealand to Japan, Singapore, and South Korea. But the deal also includes China, which in a sense only adds to its influence in the region. The United States had a similar opportunity to exert trade and commerce influence in the region, with the Transpacific Partnership or TPP, but pulled out of the deal. The RCEP’s terms are less comprehensive than the TPP’s, but it should make it easier for countries in the deal to import raw materials from each other and export finished products without high tariffs. According to Japan’s government, the RCEP will eliminate tariffs on 91% of goods traded within the bloc, and dramatically increase the level of non-tariffed goods and services. Freer trade often leads to dislocations within member economies, but over time has proven to lower the costs of goods and services globally.3
For Many Americans, the Clock is Ticking on Fiscal Stimulus – Earlier in the year, Congress passed legislation expanding unemployment insurance and increasing the weekly benefit for a period of time. In most states, unemployed workers get 26 weeks of benefits, with Congress providing an additional 13 weeks with the stimulus. Congress also extended the benefits to other types of workers, like freelancers, contract workers, and the growing number of Americans operating in the “gig economy.”4 The expansion of unemployment insurance expires on January 1, which could leave millions of Americans without benefits in the new year. If the pandemic were in a better place – and the economy was able to operate free from restrictions – an extension to the fiscal benefit may have been debatable. But failing to deliver another round of fiscal stimulus could raise the risk of millions of American families entering a very challenging period financially in the coming months.
Bad Timing for Boeing – After nearly two years of being grounded after two crashes and a myriad of quality control issues, the Boeing 737 MAX jets are being cleared to fly. The problem: global demand for air travel and new jets has been pummeled due to the pandemic. Airlines and aircraft-leasing companies have canceled approximately 10% of Boeing’s outstanding MAX orders in 2020, which for Boeing marks a sharp reversal of fortunes in the past year. In 2018, the aviation company was struggling to meet demand for its aircraft. Now, the problem is too much supply.5
Investing During a Pandemic – You may be wondering where to invest during this unprecedented time, as cash won’t do. I would suggest considering stocks that are growing earnings and dividends and have a track record of doing so.
To learn more about how to use dividend-paying stocks in your strategy to potentially generate cash flow for retirement, check out our guide “Retirement’s Uphill Battle: Generating Income in a Low Interest Rate Environment.6”
If you have $500,000 or more to invest, click on the link below to get our free guide today!
Disclosure