The beginning of a new year is the perfect time for\ninvestors to start thinking about possible investment themes. In\ntoday\u2019s Steady Investor, we take look at three to consider for 2021: <\/p>\n\n\n\n
Crisis on Capitol\nHill \u2013 <\/strong>All readers are aware of the disturbing and unfortunate events that\nunfolded at the Capitol this week. There is much to be said about what happened.\nBut our focus here will be on how the storming of the Capitol may affect the\nmarkets and the economy, both in the short and the long-term. In the\nshort-term, we might reasonably expect higher levels of volatility as\nuncertainty remains high over the next few weeks. Higher uncertainty also tends\nto give way to skittish businesses and consumers, in terms of private fixed\ninvestment and consumption. To that end, we may expect a slight dip in economic\nactivity in the short-term, as reflected in Q1 numbers (which we expected to be\nfairly weak anyway). Longer-term, however, we do not expect the civil unrest\nwill lead to a reversal of our forecast for a strong economic and corporate\nearnings recovery in the second half of the year. The events of last week were\nunprecedented, but the U.S. has endured far worse, in our view. Two World Wars,\na Great Depression, four presidential assassinations, Vietnam, 9\/11, the Great\nRecession, the storming of the U.S. Capitol \u2013 the U.S. economy is resilient. In\nour view, now is a time for investors to redouble efforts to fully separate your\nemotions about the political state of the country from your investment\ndecision-making process. <\/p>\n\n\n\n ______________________________________________________________________________________________<\/sup><\/p>\n\n\n\n 7 Secrets to Building the Ultimate Retirement Portfolio in 2021! <\/a><\/strong><\/p>\n\n\n\n As we adjust to the new year, we are witnessing\nhow pandemic and political related events can affect the market significantly.\nWith that being said, we understand that investors who are trying to build\ntheir retirement portfolio may be experiencing concerns about future\nuncertainties. <\/p>\n\n\n\n Navigating through this challenging time is difficult, but we\nstill believe it is possible to avoid the damage of economic downturns and\nachieve your retirement goals. However, achieving these goals involves some\nwork: Defining your investing objectives, determining your asset allocation,\nmanaging investments over time.<\/p>\n\n\n\n To help you do this, we are offering readers our free guide\nthat offers a step-by-step blueprint of our customized investing process to\npotentially help you build a sound retirement portfolio of your own.<\/p>\n\n\n\n If you have $500,000 or more to invest, get this guide to\nlearn our ideas on building and maintaining a retirement portfolio to\npotentially achieve your long-term goals.<\/p>\n\n\n\n Get our FREE guide:\u00a07 Secrets to Building the Ultimate DIY Retirement Portfolio<\/a>1<\/a><\/sup><\/strong><\/p>\n\n\n\n ______________________________________________________________________________________________<\/sup><\/p>\n\n\n\n More Taxes, More\nSpending Seem Likely in Years Ahead \u2013 <\/strong>With the two Georgia Senate seats\ngoing to Democrats, it appears more likely the U.S. economy will be dealt more\nfiscal support and likely higher top tax rates and capital gains rates.\nHowever, a 50\/50 split in the Senate is certainly not enough to enact massive\nspending packages and tax hikes, and history tells us that posturing during a\ncampaign cycle usually evolves into more modest proposals that take several\nmonths to become law. Even still, we might reasonably expect looser fiscal\npolicy with Democrats controlling the House, Senate, and White House. Whether\nmore spending is needed \u2013 and how much \u2013 is debatable. But the stock markets\nresponse historically to fiscal stimulus has almost always been positive. <\/p>\n\n\n\n Factories Showing\nStrong Fundamentals \u2013 <\/strong>Politics took a front seat last week with major\nevents unfolding. But as we mentioned in our first story, investors should\nremember that the economy and the political realm often operate on completely\ndifferent planes, independent of one another. One underappreciated story last\nweek charted the fundamentals of factories across the U.S., Asia, and Europe,\nwhich boosted output across the board on the heels of new orders and a\nresurgence in global trade. The global manufacturing sector has seen fairly\nsteady recovery since last spring, as opposed to the services sector which has\nstruggled to break through as the pandemic worsens. This divergence of\nstrength, with manufacturing outperforming services, may be a theme that\npersists in the first half of 2021.2<\/sup><\/p>\n\n\n\n These influential events can affect the economy in many different ways. As we wait to see how the market will be impacted, there are things you can do to protect your investments and create a retirement portfolio that meets your financial goals. To help you do this, I recommend reading our guide,\u00a07 Secrets to Building the Ultimate DIY Retirement Portfolio<\/em>.6<\/sup>\u00a0It provides a step-by-step blueprint of our customized investing process to potentially help you build a sound retirement portfolio of your own and pursue long-term investing success. Short- and long-term effects of civil unrest, tax outlook under Dem administration, global factories show strength <\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-9210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9210","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=9210"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9210\/revisions"}],"predecessor-version":[{"id":10479,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9210\/revisions\/10479"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\u00a0
If you have $500,000 or more to invest, get this guide to learn our ideas on the step-by-step process to building and maintaining a retirement portfolio that will potentially help you reach your goals and enjoy a secure retirement.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"