Broker Check

Turning the Page on 2020... Finally!

December 31, 2020

As the noted philosopher, Bob Seger, sings…. “There [we] go, turn the page.”

2020 will go down as one of the most tumultuous years in U.S. history. From an economic standpoint the disruptive technologies that had been creeping into our lives were pushed forward in a dramatic fashion to help us deal with the pandemic.  Specifically, leaving our offices and schools to work and learn from home. Disruptive technologies that might have taken years for significant adoption were utilized in amazing proportions in just 4 to 8 weeks.  These transformational technologies will continue to be at the forefront of our equity investment strategies for the foreseeable future.  The other major investment theme of 2021 is the continuation of a lower-for-longer interest rate policy by the Federal Reserve. This means that conservative investors will have a difficult time making significant gains from a fixed income portfolio.  The opportunity cost of stability will be greater, so to speak.

Low interest rates will put a premium price on growth as investors seek total return rather than relying on dividends. Additionally, the economy and markets should gain further strength as industries and businesses that were hammered severely by the virus start to open and gain momentum. The economy reopening combined with one and possibly two pandemic relief packages, plus a potential infrastructure bill later in 2021 or 2022, will continue our favorable outlook on equities.

Meanwhile, we are diligently watching for any signs of increased inflation and the potential for rising interest rates which could signify greater volatility in investment markets.

As you reevaluate your finances and revisit your goals and objectives for the new year, also make sure any life insurance, long term care, will and trust documents and beneficiary designations are all up to date.

Our hearts are with all as we have collectively and individually endured the many punches thrown by Covid-19, not to mention the social and political unrest of 2020.  As we embark on 2021 and the economy starts to recover as the pandemic approaches its end, we look forward to navigating the next chapter with you.

Here we go, turn the page!

Best wishes to you and your loved ones for a happy, healthy and prosperous New Year!