{"id":9289,"date":"2021-02-04T15:49:16","date_gmt":"2021-02-04T15:49:16","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9289"},"modified":"2022-02-26T13:05:55","modified_gmt":"2022-02-26T13:05:55","slug":"looking-ahead-to-a-post-covid-economy","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/looking-ahead-to-a-post-covid-economy\/","title":{"rendered":"Looking Ahead to a Post-Covid Economy"},"content":{"rendered":"\n

Connie Y. from Salem,\nOR asks: <\/em>Good afternoon, Mitch. Hope you\u2019re well. My question is about life\nafter Covid-19. When do you think the economy will return to normal, or will it\never? What does that look like in your opinion?<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, Connie \u2013 I\u2019m glad you asked that\nquestion. I\u2019ve had the feeling recently that the American public is viewing the\nvaccine as a panacea that will flip-on the economy and \u2018life\u2019 like a switch.\nBut I think it\u2019s important to manage \u2013 and in many ways, temper \u2013 expectations\nabout how this recovery may unfold.<\/p>\n\n\n\n

First of all, let\u2019s talk about the timeline. At current\nrates of vaccine uptake, it will be the end of the year or longer before we\nachieve mass immunization. But that should not necessarily be a major cause for\nconcern \u2013 data already suggests that vaccination efforts are improving, and I\nstrongly believe states will get better and more organized with time. <\/p>\n\n\n\n

__________________________________________________________________________<\/p>\n\n\n\n

When Will the Market Fully Recover? <\/a><\/strong><\/p>\n\n\n\n

During times like these when the market is experiencing high\nvolatility, it\u2019s easy for investors to get attached to overwhelming news\nheadlines that provoke emotionally-driven financial decisions. Even knowing\nthat the market has always recovered, questioning that \u201cmaybe this time it\u2019s\ndifferent\u201d <\/em>is completely natural. While it is difficult to remain calm in\nthis environment, I recommend not giving in to fear or panic \u2013 the actions you\ntake right now have the greatest potential to define your financial future.<\/p>\n\n\n\n

That\u2019s why we have put together a free investing playbook\nwith insights and guidance to help you seek success when investing through\nthese unprecedented times. If you have $500,000 or more to invest, get our free\ninvesting playbook today.<\/p>\n\n\n\n

Download – <\/a>The Black Swan Investing Playbook<\/a>1<\/a><\/sup><\/em><\/strong><\/p>\n\n\n\n

__________________________________________________________________________<\/p>\n\n\n\n

Another point I think is important to make before I continue\n\u2013 Covid-19 seems highly unlikely to ever go away. That\u2019s more a reality of\nviruses in general than a doomsday prediction for this pandemic specifically.\nMany Americans who have contracted the virus have developed antibodies, and the\nvaccine will help fill the gap to mass immunization. But the virus will still\nbe out in the world. In terms of your question, there may never be a literal\n\u201clife after Covid-19.\u201d<\/p>\n\n\n\n

I\u2019m no scientist, but my guess is that by summer we will\nhave substantially lower hospitalizations, deaths, and case counts associated\nwith Covid-19, as well as a confident number of vaccines administered for life\nto go on as normal. The world may look a little different \u2013 people may still\nwear masks indoors, offices may be late to reopen (some may never reopen),\npublic transportation use will be lower, and other adjustments will be\nnoticeable. But I think the country will feel safe again, and people will be\nexcited to engage.<\/p>\n\n\n\n

From an investment perspective, I think there will be quite\na bit of pent-up demand from the last year spent close to home \u2013 people will\nwant to travel again, dine indoors, and engage more with the service economy.\nThey\u2019ll also have the cash to do it \u2013 by some estimates, households have added\n$1.7 trillion in savings deposits since last February, thanks largely to\nstimulus payments and to the savings accrued by services sector closures. By\nspring, total household savings could top $2 trillion, or 4.7% of GDP \u2013 an\nunprecedented surge.2<\/sup><\/p>\n\n\n\n

And therein lies a key takeaway for investors looking ahead\nin 2021, and what I think we can expect from \u201clife after Covid-19\u201d: all of\nthese accrued savings are likely to drive a spending surge late in the year,\nand could also drive another sustained leg of the bull market. We just need to\nbe patient for another few months, but good times are ahead, in my view.<\/p>\n\n\n\n

In addition to experiencing life during a pandemic, I\nunderstand the uncertainty and concern that investors have during this time in\nthe market. We\u2019re living through extreme times, and while it\u2019s difficult to\nremain calm, it\u2019s important to take actions right now that have the greatest\npotential to define your financial future. <\/p>\n\n\n\n

That\u2019s why we have put together a free investing playbook3<\/sup>\nwith insights and guidance to help you seek success when investing through\nthese unprecedented times. If you have $500,000 or more to invest, get our free\ninvesting playbook today. You\u2019ll learn about seven time-tested guidelines to\nhelp you seek investing success through this historic \u201cBlack Swan\u201d market\ndownturn.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mitch looks at what life and the economy will be like when we emerge from the pandemic<\/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-9289","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\/9289","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=9289"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9289\/revisions"}],"predecessor-version":[{"id":10460,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9289\/revisions\/10460"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}