Hello. This is our video for the week ended August 21, 2020, and we have a lot to talk about, mostly good news, so that’s always a good thing. Thank you for watching this video. I hope you are sane, and I hope you are healthy and that all is well. So, we got some very interesting data this week from HIS Market Data that looks at the economic activity in the United States, and we got some surprising news, and that is that the economy in the United States is actually the activity is at an 18-month high, okay, so not back to just prior to the pandemic, a year and a half ago, so a lot of activity. And the service sector, which is the one that people worry about the most because it’s 70 percent of our economy, was the fastest growing sector according to their data. So why is this all happening? Well, it’s because of the stimulus checks that the government is dispensing, so a Bloomberg study showed that the people who are unemployed who are receiving benefits, that 68 percent of them are making more money now unemployed than they did while they were working, so they have money, and they’re spending it, and that’s driving manufacturing. It’s driving the service sector.
Now, of course, there are pockets of restaurants and airlines that are suffering, but the other parts and many parts of the service sector are actually doing very well right now and are improving. So, what does that tell us? Well, keep your eye on the Congress, on the Democrats or Republicans. As it sits right now, it looks like we will not have a deal probably until the end of September, so they’re gong to be going back and forth. There’s also the debt ceiling thing that’s coming, so we’re going to wrap that one into the picture, and just make it into a nice, fun spectacle with all kinds of political drama and posturing, just before the elections. Isn’t that wonderful. So, it’s all, we anticipate that the economy is going to continue to recover. These are good signs, and so therefore, we remain optimistic. The buys that we’ve made so far since we’ve been getting back in have been good ones so far and so has the bond market been helping us as well. So, overall, we’re happy with the progress that we’re making.
Now again, all of this is contingent upon a deal being made because if it isn’t, then people will not have money to make their mortgage payments and even worse buy food, pay for healthcare, and we could descend into a terrible economic place, so we anticipate a deal will be made. Of course, we now know that Joe Biden is the nominee for the Democrat Party. I don’t think that that was a surprise to anybody, but it’s official now, and the polls are showing that he’s leading a little bit, but yet the stock market has not reacted to that. There are some people who theorize that if Biden becomes president, the stimulus will probably increase and that stimulus goes directly into people’s spending and that would actually be good for profits for companies that are on the stock market, and may actually boost the stock market. So, we’ll have to wait and see how that all plays out, but that’s where we are right now, so things look good. We hope that you have peace of mind. We hope that you are enjoying your second childhood without parental supervision even though I know that right now you’re grounded by the virus, but I’ll tell you I was watching an interview on CNBC, and the medical expert was talking about the fact that there are 29 vaccine candidates right now, and there seems to be a growing optimism that one or two of those will actually be viable, and we will have a vaccine by the end of this year.
Now, of course, we’ll have to see that, but we’re not going to believe it until we see it, but according to that interview, in addition to that, if in fact we do have that, then by April or May of next year we will probably be dispensing hundreds of millions of doses of this vaccine. Wow. That could be a game changer. All that pent up demand from people who want to, like you, maybe, who want to go traveling can do things. So, it looks like there is light at the end of the tunnel, and it’s not an oncoming train. It looks like there’s a light at the end of the tunnel. So overall, we remain optimistic about where things look from now going forward, and so, we’ll keep you posted as things go along. So, once again, thank you so much for allowing us to be your retirement planner, for guiding you through the pandemic and through all this stuff that’s been going on. We hope that you’ve had peace of mind through it all. We hope that you have let us do the worrying for you, and you’ve taken care of what needs to be taken care of in your life, and so we look forward to seeing you in person at some point, but in the meantime, stay sane and stay healthy, and we will talk soon.