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
Global Supply Chains\nCan\u2019t Keep Up with Consumer Demand \u2013 <\/strong>U.S. consumers are out shopping again,\nboosted by accumulated savings, more stimulus checks, and positive news on the\nnational vaccination campaign. Demand is returning so quickly, however, that\nglobal supply chains are having a hard time keeping up. If you have tried to\norder an item recently only to realize it is on \u201cbackorder\u201d or not available,\nthen you\u2019ve had first-hand experience with the bottlenecks in the marketplace. Everything\nfrom toys, to cars, to semiconductors are experiencing supply chain shortages\nand could ultimately drive up prices. Perhaps the most acute shortages are\nbeing seen in the supply of semiconductors, which seems to stem in part from a\nglobal movement to buy new computers and other electronics for home office\nsetups. Semiconductors are also used in cars, and Toyota and Honda have gone as\nfar as halting production in North America due to lack of essential components.\nThe end result is that factories are reporting the sharpest rise in prices for\ninputs they\u2019ve seen in nearly 10 years, which is likely to find its way into\nprices charged to consumers, in our view.1<\/sup><\/p>\n\n\n\n ______________________________________________________________________<\/p>\n\n\n\n Let\u2019s Try Using Market Volatility to Your Advantage!<\/a><\/strong><\/p>\n\n\n\n While there are many\npositives impacting the economy like increasing demand, the market has still\nbeen very volatile. As of recently, the market has been experiencing extreme\nups and downs. Managing this volatility can be a huge challenge for many\ninvestors. <\/p>\n\n\n\n As we wait for this\nrollercoasting of volatility to calm down, we recommend that investors learn from\nthe positives of volatility.<\/p>\n\n\n\n If you have $500,000 or\nmore to invest, get our free guide, \u201cUsing Market Volatility to Your Advantage\u201d\nand learn our insights, based on decades of experience, about how a volatile\nmarket may be able to actually help investors refine their strategies and\npotentially generate solid returns over time. Download Our Guide, \u201cUsing Market Volatility to Your Advantage\u201d<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n ______________________________________________________________________<\/p>\n\n\n\n Americans are Itching\nto Travel Again \u2013 <\/strong>U.S. airports are now seeing travel activity on par with activity\nin March 2020, before restrictions went into place. For full-year 2020, U.S.\nairlines flew 60% less passengers than in 2019, which brought passenger traffic\ndown to levels not seen since the mid-1980\u2019s. To be sure, the pandemic is not\nover, and it may take another quarter or two before we see travel surge back to\n2019 levels. But major U.S. airlines see light at the end of the tunnel, and\nCEOs form United Airlines and Delta indicated they may stop bleeding cash in\nthe coming weeks. Hotels are also seeing an uptick in activity, with hotel\nstocks rallying and many properties reopening and hiring again. Hotels will\nalso need to adjust downward for conventions and large meetings that may not\nhappen this year. One area for both hotels and airlines that could take much\nlonger to recover, and is a key part of overall revenues, is international\ntravel. Though we believe there will be a day this year or early next when\ninternational travel rebounds substantially, it will be a much longer wait than\ndomestic trips and travel.3 <\/sup><\/p>\n\n\n\n As the Housing Market\nBooms, the Costs of Building are Rising \u2013 <\/strong>Housing is one area of the U.S.\neconomy that has been extremely resilient in the face of the pandemic. As\nMillennials made the leap from cities to the suburbs and purchased homes (often\nfor the first time), median home prices have felt support and continued to\nmarch higher. The demand has been so firm that the prices are rising for raw\nmaterials used to build homes. Lumber has never been more expensive than in the\ncurrent environment, and crude oil \u2013 which is used in paint, drain pipes, roof\nshingles, and flooring \u2013 has rallied over the past several months. Copper\nprices have also jumped by nearly 40% since last fall, and brick, concrete, and\ninsulation prices are all higher as well, with many hitting new records in\n2021. Taken together, these higher prices for raw materials are putting upward\npressure on the overall cost of homes in the US today, which makes\naffordability even more of an issue nationally.4<\/sup><\/p>\n\n\n\n Finding\nSilver Linings in a Volatile Market<\/strong> \u2013 The market has had extreme ups and downs recently and ss\nwe experience this volatility, it may be hard to find the silver linings, but\nthat doesn\u2019t mean they aren\u2019t there. To help give you additional insight into\nhow you can make the most of turbulent times, I recommend reading our guide\n\u201cUsing Market Volatility to Your Advantage.\u201d5<\/sup> <\/p>\n\n\n\n This guide\ncan help you learn about our insights, based on decades of experience, about\nhow a volatile market may be able to actually help investors refine their\nstrategies and potentially generate solid returns over time. If you have $500,000 or\nmore to invest, download this free guide today by clicking on the link below.<\/p>\n","protected":false},"excerpt":{"rendered":" Air travel, hotels starting to recover, supply chain struggles to meet rising demand, building material prices soar<\/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-9429","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\/9429","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=9429"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9429\/revisions"}],"predecessor-version":[{"id":10429,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9429\/revisions\/10429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nYou\u2019ll get our ideas on:<\/p>\n\n\n\n
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\nYou\u2019ll get our ideas on:<\/p>\n\n\n\n