{"id":9259,"date":"2021-01-25T09:39:35","date_gmt":"2021-01-25T09:39:35","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9259"},"modified":"2022-02-26T13:05:56","modified_gmt":"2022-02-26T13:05:56","slug":"stocks-surge-to-new-highs-brexit-goes-live-chinas-incomplete-recovery","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/stocks-surge-to-new-highs-brexit-goes-live-chinas-incomplete-recovery\/","title":{"rendered":"Stocks Surge to New Highs, Brexit Goes Live, China&#8217;s Incomplete Recovery"},"content":{"rendered":"\n<p>In today\u2019s Steady\nInvestor, we take a look at key factors that we believe are currently impacting\nthe market, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>U.S\nstocks power to new highs<\/li><li>Brexit\nin action<\/li><li>Key\ningredient China\u2019s economy is lacking<\/li><\/ul>\n\n\n\n<p><strong>U.S. Stocks Power to\nNew Highs \u2013 <\/strong>The S&amp;P 500 index reached \u2013 and hovered around \u2013 all-time\nhighs this week, boosted in part by strong earnings reports from Netflix and\ninvestment banking giant Goldman Sachs. Netflix crossed 200 million subscribers\nfor the first time in the company\u2019s history, powering a strong rally in shares\nand also lifting fellow tech giants like Apple, Alphabet, and Facebook. Goldman\nSachs widely outperformed the street\u2019s earnings expectations, which sets the\nstage for a strong 2021. Any concerns regarding civil unrest in Washington D.C.\nand State Capitols were put to rest yesterday, and the relatively quiet day may\nhave helped provide support to U.S. equities. Biden\u2019s inauguration also starts\nthe clock on the potential for yet another fiscal stimulus package, which\ninvestors may already be pricing-into stocks. In a confirmation hearing before\nthe U.S. Senate this week, U.S. Treasury Secretary nominee Janet Yellen made\nthe argument for more deficit spending needed to push the economic recovery\nforward, underscoring the Biden Administration\u2019s priority of providing\nadditional aid to struggling families and businesses.<sup>1<\/sup><\/p>\n\n\n\n<p>______________________________________________________________________<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/download-retirement-strategy-guide?source=zim&amp;medium=blog&amp;term=steadyinvestor_zim_2021_01_25&amp;content=retirement_strategy_guide\">See How You Can Protect Your Retirement Against Life\u2019s Unknowns<\/a><\/strong><\/p>\n\n\n\n<p>Looking ahead, there\nare many uncertainties surrounding the market. One question many investors may\nbe wondering is how they can protect their retirement assets against these\nunknowns. <\/p>\n\n\n\n<p>In times like these,\nit is important to have a strategy in place to account for the market\u2019s ups and\ndowns. Our free guide, <em>How Solid Is Your Retirement Strategy?, can <\/em>help\nyou build a retirement strategy that takes the \u201cwhat ifs\u201d into account<\/p>\n\n\n\n<p>This guide offers\nour views on some key retirement investment strategies that may help you\npreserve your financial security in retirement, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The\nimportance of flexible portfolio allocation<\/li><li>Why\nkeeping some liquid assets can potentially help you preserve more wealth<\/li><li>Understanding\nyour risk tolerance in case of a market downturn<\/li><li>Plus,\nmore strategies to help you protect your retirement assets <\/li><\/ul>\n\n\n\n<p>If you have $500,000\nor more to invest, get our free guide by clicking on the link below. <\/p>\n\n\n\n<p><strong>Get our FREE guide: <a href=\"https:\/\/go.steadyinvestor.com\/download-retirement-strategy-guide?source=zim&amp;medium=blog&amp;term=steadyinvestor_zim_2021_01_25&amp;content=retirement_strategy_guide\">How Solid Is Your Retirement Strategy?<\/a><\/strong><sup>2<\/sup><\/p>\n\n\n\n<p>______________________________________________________________<\/p>\n\n\n\n<p><strong>Brexit in Action \u2013 <\/strong>The\npast few weeks marked the first time in nearly 50 years when goods passing\nbetween the European Union and Britain needed to pass through customs checks.\nWith Brexit official, trade must now filter through two sets of standards and\nregulations \u2013 the U.K.\u2019s and the E.U.\u2019s. For many large businesses with\nresources to navigate the complex rules and regulations, moving goods across\nborders and through ports has been relatively easy. For small businesses with\nfewer resources and human capital, however, the process has been much more\ndifficult. It\u2019s early days in one of the busiest trade routes in the world, and\ninitial results are mixed, but this relationship will be one to watch\nthroughout 2021.<sup>3<\/sup><\/p>\n\n\n\n<p><strong>China\u2019s Economic\nRecovery Lacks a Key Ingredient \u2013 <\/strong>Because Covid-19 originated in China and\nthe country implemented draconian measures to thwart the spread, the economy\nwas able to restart ahead of the rest of the world. For 2020, China\u2019s economy\nmanaged to grow 2.3% (according to China statistics), which is the slowest\ngrowth rate in nearly 50 years but still represents the only major economy to\ngrow last year. Even though China managed to eke out growth in 2020, many\nanalysts rightly point out that the rebound has been uneven. China has relied\nheavily on exports of manufactured goods, and its fiscal and monetary stimulus\nfocused on restarting factories and supporting businesses. Missing from this\neconomic rebound: robust consumer spending and retail sales. Domestic spending\nremained weak, and retail sales fell 3.9% last year.<sup>4<\/sup> China\u2019s\ngovernment did not focus any part of stimulus on the consumer \u2013 as the U.S. and\nother developed countries did \u2013 and employers there tended to cut hours,\nputting pressure on consumer sentiment and driving savings higher. China also\nhas a productivity problem, according to the International Monetary Fund: by measure\nof average productivity across sectors, China\u2019s economy is only 30% as productive\nas the world\u2019s most productive economies, like the U.S., Japan, or Germany. <\/p>\n\n\n\n<p>While the market is at a new high, there is no way to\npredict where it will be in just a few weeks\u2019 time, especially with so many\nunknowns surrounding the market and economy. To help you prepare your\nretirement for the market\u2019s uncertainties, we recommend finding a retirement\nstrategy that takes these \u201cwhat ifs\u201d into account. Our free guide can help you\nto prepare for what\u2019s to come as you\nlook to 2021!<\/p>\n\n\n\n<p>If you have $500,000 or more to invest, get our free guide, <em>How\nSolid Is Your Retirement Strategy.<sup>5<\/sup><\/em> You\u2019ll get valuable and\npractical ideas to help build a \u201cweatherproof\u201d retirement strategy that can\npotentially protect your retirement nest egg from any storm that could threaten\nyour financial security.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Netflix, Goldman Sachs power stocks, China has a productivity problem, Brexit&#8217;s impact on trade<\/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":[1],"tags":[],"class_list":["post-9259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9259","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=9259"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9259\/revisions"}],"predecessor-version":[{"id":10466,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9259\/revisions\/10466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}