__________________________________________________________________________<\/p>\n\n\n\n
Why You Should Stick to the Fundamentals Throughout 2021!<\/a><\/strong><\/p>\n\n\n\n There is no way to know exactly how or when the economy will\nrecover. With so many unpredictable factors impacting such as the vaccine\nrollout and the next stimulus plan, many investors may fall prey to emotional\ndecision making and trying to time or predict the market. Instead of falling\nprey to this mistake, I recommend staying focused on the fundamentals and key\ndata points that can positively impact your investments in the long-term. <\/p>\n\n\n\n To help you do this, I am offering all readers our\njust-released Stock Market Outlook report. This report contains some of our key\nforecasts to consider such as:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today! __________________________________________________________________________<\/p>\n\n\n\n There\u2019s a reasonably long road ahead \u2013 as I write, under 10%\nof the U.S. population has received at least one dose of the vaccine, and a\nU.S. Census Bureau survey of 68,000 Americans found that some 50% were unsure\nabout taking the vaccine at all. Even still, the pace of daily vaccine shots\nbeing administered continues improving by the day, and I expect it will\ncontinue to improve in the coming weeks and months. <\/p>\n\n\n\n So, what will the economic recovery look like in 2021? I\u2019m\nlooking at corporate earnings, consumer sentiment, and energy markets for\nclues. <\/p>\n\n\n\n Let\u2019s start with earnings. Here at Zacks Investment\nManagement, we keep a very close eye on corporate earnings, estimates, and\nstatements. I mentioned earlier that CEOs have been all over the map in their\noutlooks, but in the most recent earnings-call transcripts, I\u2019ve noticed a\nmarked rebound in sentiment. Bank of America also uses transcripts to measure corporate\nsentiment among S&P 500 companies, and recent analysis found that sentiment\nin Q4 had risen to an all-time high. Corporations are ready to get back to\nnormal, just like we are.<\/p>\n\n\n\n Corporate profits have also rebounded more quickly than\nexpected over the past year. While full-year corporate earnings are likely to\nbe greater than -10% in 2020, we\u2019re expecting an over +20% jump in 2021. The\nrelatively slow \u2013 but accelerating \u2013 vaccine rollout does not alter our\noutlook.<\/p>\n\n\n\n On the consumer sentiment front, we can see below that the\nUniversity of Michigan\u2019s index of consumer sentiment has rebounded off the lows,\nand appears poised to continue charting its recovery (the pandemic-driven\nrecession shaded in yellow):<\/p>\n\n\n\n Source: Federal\nReserve Bank of St. Louis3<\/sup><\/em><\/strong><\/p>\n\n\n\n A recent consumer expectations survey\nfrom the New York Federal Reserve also highlights growing strength. According\nto the NY Fed\u2019s January Survey of Consumer Expectations, American households\nexpect spending to be 4.2% higher a year from now, which underscores the belief\nthere\u2019s light at the end of this tunnel. Respondents also expected their\nincomes to be 2.4% higher, citing expectations for a strengthening jobs market.\n<\/p>\n\n\n\n Finally, the energy markets have shown\nsigns of pricing an economic recovery sooner rather than later. The price of\noil is determined by supply and demand, which I would argue are both supporting\nhigher prices. Production cuts and inventory reductions have kept a check on\nsupply, but demand is also rising as countries position to push growth forward\nin the second half of 2021. Brent crude futures are trading some 50% higher\nthan where they were in October 2020, with the price for a barrel of oil\npushing to $60 for the first time in over a year. <\/p>\n\n\n\n Bottom Line for\nInvestors<\/strong><\/p>\n\n\n\n Long-time readers of my column know I rarely bet against the\nUnited States\u2019 ability to overcome adversity. The pandemic and now the vaccine\nrollout represent adversity #1 for the U.S. (and the world) in 2021, and I\u2019m\nanticipating a better-than-expected outcome for a return to economic normalcy.\nI\u2019m looking for corporate earnings growth greater than 20% year-over-year in\n2021, and full year GDP growth of 5+%. In my view, owning quality stocks is the\noptimal way to capture this growth. <\/p>\n\n\n\n We may not know how 2021 is going to roll out, but the key is to not give into fear and sudden emotional investing. It\u2019s better to use a more long-term strategy to help your financial gain, not only this year, but also down your financial timeline. To help better position yourself for what\u2019s to come, I recommend focusing on what matters – key data points and economic indicators that could impact your investments. To help you do this, I am offering all readers our Just-Released March 2021 Stock Market Outlook Report. <\/a><\/strong><\/p>\n\n\n\n This report looks at several factors that are producing optimism right now and contains some of our key forecasts to consider such as:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today! There are a lot of variables, but mass vaccinations open a path toward normalcy and economic recovery <\/p>\n","protected":false},"author":3,"featured_media":7430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,71],"tags":[],"class_list":["post-9323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitch-on-the-markets","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9323","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=9323"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9323\/revisions"}],"predecessor-version":[{"id":10456,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9323\/revisions\/10456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
IT\u2019S FREE. Download the Just-Released March 2021 Stock Market Outlook<\/a>2<\/sup><\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/10_pic1-1024x395.png\")
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