Zacks Investment\nManagement provides insight into the biggest news stories, and key factors that\nwe believe are currently impacting the market such as:<\/p>\n\n\n\n
Is Global Economic\nGrowth Ready to Surge? <\/strong>The International Monetary Fund (IMF) thinks so. According\nto recently revised estimates, the IMF is pegging global economic growth for\n2021 at +6%, which would mark the largest year-over-year increase since at\nleast 1980 (when it started collecting data). To be fair, +6% global GDP growth\nis coming off very weak comparisons from 2020, when the global economy shrunk\nby -3.3% as a result of pandemic-induced lockdowns. The United States and\nChina, the world\u2019s two biggest economies, are driving the rebound, but we would\nexpect to see a \u201crolling global recovery\u201d as vaccines become more broadly\navailable worldwide and as the economic risks of the pandemic fade. 2021 will\nlikely be a unique year in the realm of growth, as U.S. consumer has\naccumulated some $1.3 trillion in savings, interest rates remain relatively low\n(and will likely remain relatively low), and though inflationary pressures are\nlikely to surface, inflation should remain in check for the year. The question\nfor investors is, how much of this growth surge is already priced into stocks.1<\/sup><\/p>\n\n\n\n ___________________________________________________________________________<\/p>\n\n\n\n Where to Turn for a Lower-Risk, Income Producing Investment?<\/a><\/strong> As the economy recovers, investors are seeking more financial options, especially those who are trying to build their retirement portfolio. Many investors may be wondering where to turn for a lower-risk, income producing investment?<\/p>\n\n\n\n We recommend a viable option, preferred securities<\/em>, that pay regular dividends and avoid the price volatility of common stocks. Sometimes called \u201ca stock that acts like a bond,\u201d preferred securities offer a fixed dividend that is often higher than the company\u2019s bonds. As you plan your retirement, we want you to feel secure in a strategy that meets your financial goals. In our Zacks\u2019 Preferred Income Strategy Guide, <\/em>we provide helpful information so you can learn more about this investment option. ___________________________________________________________________________<\/p>\n\n\n\n A Different Version\nof the Economic \u201cNew Normal\u201d \u2013 <\/strong>Over the last year, businesses big and small\nhave made several changes to adapt to what has been termed the economic \u201cnew\nnormal.\u201d Investing in digital infrastructure, embracing remote work, expanding\n\u2018to-go\u2019 and takeaway services, and so on down the line. There have also been hundreds\nof regulatory adjustments made to drive efficiencies \u2013 allowing healthcare\nproviders to cross state lines which meant easing interstate licensing rules, allowing\nrestaurants to sell to-go cocktails, and expanding the allowance of online\nservices like document notarization and marijuana sales. Many economists and\nprognosticators were predicting that the economy would be forever changed, but the\nreality may be more nuanced. Large U.S. corporations have indicated they are\nplanning to keep urban center office space, but may downsize the amount of\ncommercial real estate they lease or own. There is also a call for lawmakers to\nkeep many of the loosened regulations in place, which could indicate a \u2018reset\u2019\nfor how small businesses operate but not a wholesale change.3<\/sup><\/p>\n\n\n\n Weighing Potential\nIncreases to Corporate Tax Rates \u2013 <\/strong>The U.S. Treasury Secretary, Janet\nYellen, made headlines this week in calling for a global minimum corporate tax\nrate. The argument for a global minimum tax on corporations is not a new one \u2013\nthe previous Treasury Secretary, Steven Mnuchin, had been part of international\nnegotiations involving 100 countries. The idea behind a minimum global\ncorporate tax is to disincentive companies from moving operations from a\nrelatively higher tax country to a lower-tax country, in other words creating a\nsystem where corporations would not actively seek solutions to lower their tax\nburdens. The Biden administration is proposing an increase in the corporate tax\nrate from 21% to 28%, which would place the United States at the top end of countries\nwith relatively higher corporate tax rates. If the Biden administration pushes\nforward with its plan without a global minimum tax rate, it faces the possibility\nof creating a potential tax disadvantage for U.S. corporations. These talks are\nongoing and complex, with progress slowed by the pandemic, but will be a key\nfactor to watch in the coming year. Finance ministers from the G20 said they\nhope a deal could be reached by mid-year.4<\/sup><\/p>\n\n\n\n The U.S. Services\nSector Springing Back to Life \u2013 <\/strong>The U.S. services sector, which makes up a\nlion\u2019s share of overall economic activity, surged at its fastest pace on record\nin March. The data goes back to 1997, which means it encompasses several\nperiods of robust economic growth. The U.S. manufacturing sector followed suit,\nwith factory activity rising to its highest level in 37 years. All signs are\npointing to a demand-driven resurgence in economic activity, which is creating\n\u2018good problems\u2019 in the supply chain. Production-capacity constraints and\nmaterial shortages may continue to drive delivery delays, but overall, the\nreport indicates that economic activity is accelerating.5<\/sup><\/p>\n\n\n\n Where to Turn for a Lower-risk, Income Producing\nInvestment? – <\/strong>While we can\u2019t predict or control the future of the market,\nthere are ways you can better plan and protect your investments in retirement. Many\ninvestors may be wondering where to turn for a lower-risk, income producing\ninvestment? We recommend Preferred Securities,<\/em> and to help you\nunderstand exactly how it can benefit your financial future, we have\ncreated a Zacks Preferred Income Strategy Guide<\/em>.6<\/sup><\/p>\n\n\n\n This guide will help you learn more about\npreferred securities and generating cash flow and income with our Preferred\nIncome Strategy. You\u2019ll find helpful information including:<\/p>\n\n\n\n If you have $500,000 or more to invest and want\nto learn more, click on the link below:<\/p>\n","protected":false},"excerpt":{"rendered":" IMF estimates record 2021 growth, the impact of higher corporate taxes, the services sector springs to life <\/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-9495","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\/9495","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=9495"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9495\/revisions"}],"predecessor-version":[{"id":10417,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9495\/revisions\/10417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy:
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<\/a>Learn About Zacks\u2019 Preferred Income Strategies!<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n
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