Zacks Investment Management provides insight into the biggest news stories, and key factors that we believe are currently impacting the market such as:
U.S. Economy Powers Higher in Q1 – As expected, the U.S. economy roared back to life in the first quarter, growing at a +6.4% annualized rate and leaving the economy just shy of its pre-pandemic GDP peak. With demand continuing apace, and with continued strength in jobs, manufacturing, and housing as described below, the U.S. appears highly likely to grow to its largest size ever (as measured by GDP) in the second quarter. In fact, nominal GDP – which is not adjusted for inflation – has already posted an all-time high, so not much growth is required to reach a new real GDP record. Compare the U.S.’s economic rebound from Covid-19 with the nation’s economic rebound from the 2008 Global Financial Crisis, and one will discover an apples-to-oranges comparison. It took the economy some 3 years to reach a new high after the financial crisis, compared to just over a year this time around. The U.S. economy was bolstered by record fiscal and monetary stimulus and a consumer armed with savings and stimulus payments. Personal consumption expenditures grew +10.7% in Q1, driving a significant portion of overall economic gains.1
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Looking for a Lower-Risk, Income Producing Investment?
As we witness the economy slowly recovering, investors, especially those who are trying to build their retirement portfolio, are seeking more financial options. For investors looking to avoid the price volatility of common stocks, there is an option for a lower-risk, income producing-investment.
We recommend, preferred securities, that pay regular dividends and avoid the price volatility of common stocks. Sometimes called “a stock that acts like a bond,” preferred securities offer a fixed dividend that is often higher than the company’s bonds. As you plan your retirement, we want you to feel secure in a strategy that meets your financial goals. In our Zacks’ Preferred Income Strategy Guide, we provide helpful information so you can learn more about this investment option.
If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy:
Learn About Zacks’ Preferred Income Strategies!2
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Job Openings Flood the Restaurant Industry – 2020 was a rough year for restaurants, to say the least. But as vaccinations pick up and restrictions get loosened, restaurants are shifting from trying to lure customers to trying to lure employees. In nationwide surveys of restaurant chains and independent restaurants, the consensus is that they are having difficulty finding enough workers to fill out kitchens and dining rooms. Some restaurants are getting crafty to encourage employees to return – Jimmy John’s sandwich restaurant is offering signing bonuses, Chipotle is offering college tuition for 6+ month employees interested in a food/agriculture degree, and Taco Bell is offering paid family leave to managers. McDonald’s is entering the fray, too, exploring what benefits and pay they can offer to attract new workers. Sales at bars and restaurants climbed 13.4% in March as compared to February, which is the biggest jump since last summer.3
Manufacturing and Factory Orders Continue Apace – U.S. orders for durable goods, which are designed to last at least 3 years, rose 0.5% month-over-month in March, which marks 10 out of 11 months of growth. Manufacturers are also reporting robust hiring activity, adding personnel, increasing hours, and pushing up wages. The manufacturing survey’s employment index – which measures wages and benefits – is at its highest level ever. The Dallas Federal Reserve released data this week underscoring the broad-based strength. In it, they found business activity at its strongest since June 2018 with new orders eclipsing their highest levels on record.4
Housing Market Stays Red Hot – The U.S. housing market continues its strong ascent, with home price growth pushing through to a 15-year high in February. Strength in the housing market is a result of classic supply and demand forces: the number of homes for sale approached a record low, while demand for houses continues apace on the heels of low mortgage rates and a desire to relocate out of cities to suburban houses with more remote workspace. The S&P CoreLogic Case-Shiller National Home Price Index rose 12% from February 2020 to February 2021, which marks the highest annual rate of price growth since February 2006 – which, it should be noted, is around when the housing bubble burst in the previous cycle.5
Where to Turn for a Lower-risk, Income Producing Investment? – Currently, the economy is on its way to recovery, and even though we can’t predict the future, there are ways you can better plan and protect your investments in retirement. Many investors may be wondering where to turn for a lower-risk, income-producing investment. We recommend Preferred Securities, and to help you understand exactly how it can benefit your financial future, we have created a Zacks Preferred Income Strategy Guide.6
This guide will help you learn more about preferred securities and generating cash flow and income with our Preferred Income Strategy. You’ll find helpful information including:
If you have $500,000 or more to invest and want to learn more, click on the link below:
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