{"id":8979,"date":"2020-10-29T14:42:49","date_gmt":"2020-10-29T14:42:49","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=8979"},"modified":"2022-02-26T13:06:28","modified_gmt":"2022-02-26T13:06:28","slug":"what-are-the-prospects-for-a-second-stimulus-plan","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/what-are-the-prospects-for-a-second-stimulus-plan\/","title":{"rendered":"What Are the Prospects For a Second Stimulus Plan?"},"content":{"rendered":"\n<p><em>Caroline R. from\nSalem, OR asks: <\/em>Hello Mitch, I\u2019m curious to hear your thoughts on another\nstimulus plan. I work in the fitness industry, and without more federal help I\nworry our business will not survive. But I also think this is true for small\nbusinesses across America, and that it could affect the stock market more than\npeople think. Your thoughts?<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>Thanks for writing, Caroline, and I empathize with your\nsituation in the fitness industry. I know it\u2019s been very challenging for small\nbusinesses in retail, hospitality, fitness, and other industries that\nessentially require physical interaction. With Covid-19 cases on the rise and\nwinter quickly approaching, many business difficulties still lie ahead \u2013 at\nleast in the short-term.<\/p>\n\n\n\n<p>Many investors and Americans alike have been laser-focused\non stimulus discussions, which is a point of frustration for many. In my view,\nthe likelihood of a deal between House Democrats and Senate Republicans before\nthe November 3rd presidential election is basically zero. Most market-watchers\nagree that it should not be, however. Even the Federal Reserve, which\ncustomarily steers clear of any political process, stated in the September\nminutes that they view fiscal policy as the optimal response to produce economic\nstimulus moving forward.<sup>1<\/sup><\/p>\n\n\n\n<p>_____________________________________________________________________________<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2020_10_29&amp;content=volatility_guide\">Handling Volatility \u2013 What You Should Do?<\/a><\/strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2020_10_29&amp;content=volatility_guide\"><br><\/a> \u00a0<br> Sudden market declines often result in emotional decision-making. For example, many investors rationalize that selling out of stocks is the surest way to avoid incurring further losses, or buying stocks when they are low could ensure future gains. Neither are foolproof.<br> \u00a0<br> The real challenge is not in finding a way to eliminate volatility\u2014it is developing a mental approach to dealing with it. Our guide, \u201cHelping You Manage Market Volatility,\u201d will provide you with insights and tips to do just that. Get answers to questions like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Market downturns can and will occur, but what should you do?<\/li><li>How can diversification help you manage volatility without compromising your returns?<\/li><li>When volatility is too much for you to handle, how can a money manager help?<\/li><li>Can volatility actually be an opportunity?<\/li><\/ul>\n\n\n\n<p>If you have $500,000 or more to invest and want to get answers to the questions above, click on the link below to download this guide today!<br> \u00a0<br><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2020_10_29&amp;content=volatility_guide\"> <\/a><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2020_10_29&amp;content=volatility_guide\">Download Zacks Volatility Guide, \u201cHelping You Manage Market Volatility.\u201d<\/a><sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2020_10_29&amp;content=volatility_guide\">2<\/a><\/sup><\/strong><\/p>\n\n\n\n<p>_____________________________________________________________________________<\/p>\n\n\n\n<p>Although the timing of stimulus may not be optimal for you\nand many other businesses like yours, I do believe the silver lining is that\nstimulus is indeed coming. The political will is there \u2013 but it\u2019s the size of\nthe package that is making it elusive. Regardless of who wins the presidency,\nthe need for more economic stimulus is not going away, and that is a bipartisan\nview. <\/p>\n\n\n\n<p>What\u2019s more, I think we will start to see some softening of\neconomic growth in Q4, which may spur Congress to more concrete action. The jobs market is already showing\nsigns of struggle in an effort to claw back to pre-pandemic levels. In\nSeptember, U.S. employers added 661,000 jobs, which was far below the 859,000\nexpected and marked a sharp slowdown from gains made over the summer. According\nto the jobs website Glassdoor, the number of job postings fell -0.3% in\nSeptember compared to August, which may be an early indication that the \u2018low\nhanging fruit\u2019 job gains have already been posted. The U.S. has replaced 11.4\nmillion of the 22 million jobs lost to the pandemic, but momentum is likely to\nslow until the virus comes under better control and\/or a vaccine is widely\ndistributed. Neither outcome seems like for 2020, which underscores the likely\nneed for more fiscal stimulus before the end of the year.<sup>3<\/sup><\/p>\n\n\n\n<p>As far as the\nmarket is concerned, I would agree that there is a certain fixation on\nstimulus. We\u2019ve seen bouts of downside volatility when talks break down, and\nrecovery to the upside when the two sides appear to closer to making a deal. I\nwould expect this relationship to play out in Q4, until a deal is done. But as\nmy long-time readers know, I never advocate making portfolio moves in response\nto short-term uncertainties or movements in the stock market, and I do not\nthink it would be wise to try and time the market relative to a stimulus deal.\nBetter to be positioned for when a deal eventually comes, in my view, which\nmeans maintaining an asset allocation in line with your long-term goals. <\/p>\n\n\n\n<p>In\naddition to aligning your allocation with your long-term goals, there are other\nsteps you can take to manage these turbulent times. To help give you insight\ninto some ways you can do this, check out our guide, \u201cHelping You Manage Market\nVolatility.\u201d<sup>4<\/sup>&nbsp;It will provide you with insights and tips to do\njust that. Get answers to questions like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Market downturns can and will occur, but what should you do?<\/li><li>How can diversification help you manage volatility without compromising your returns?<\/li><li>When volatility is too much for you to handle, how can a money manager help?<\/li><li>Can volatility actually be an opportunity?<\/li><\/ul>\n\n\n\n<p>If you\nhave $500,000 or more to invest and want to get answers to the questions above,\nclick on the link below to download this guide today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mitch offers his view on the need for another stimulus\u2014and if and when it will happen <\/p>\n","protected":false},"author":3,"featured_media":7436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-8979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=8979"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8979\/revisions"}],"predecessor-version":[{"id":10520,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8979\/revisions\/10520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=8979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=8979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=8979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}