This is our weekly Market Alert video for the week ending Friday, September 3, 2021. I have some very exciting news to share with you! I am now a grandfather! Yes, we have a little boy, his name is Nathaniel, and he is 19.75 inches long, and eight and a half pounds! I understand that that’s a big boy. His dad is 6’4”, so he’s probably going to be a pretty tall young man. So, we’re very excited, and we’re getting daily videos and pictures. Everybody that told me when you have a grandchild, that changes your life. You were right! Who knew?
Let’s talk about what’s going on in the world of the stock market, the economy, the Federal Reserve, inflation—all that kind of stuff. The jobs numbers this week came in very, very low. The expectation was for 720,000 new jobs, and the number was actually 235,000—so it was a very low number. The bad guy in the whole picture apparently is the Delta variant, meaning that people are not hiring because they’re concerned about another surge in the virus. So that has caused a little bit of a jobs filling gap.
Once again, we feel that this is not going to be a permanent condition. The Delta variant, as we’ve described to in previous videos, if you look at how it behaved in Asia and in Europe, it has a big spike. It’s very, very contagious, and a lot of bad things have happened, but it wasn’t prolonged. It lasted about two months before it peaked, and then it came down. It appears to be doing that in our country as well. It seems to have been reaching a peak, and now it looks like it’s starting to subside. With that being the case, we think that the jobs numbers will start picking up again.
Just to give you an example of why this jobs situation is so important: I was talking to a client—she’s 73-years old—and she said she goes to McDonald’s three times a week. Now, I told her, I didn’t know that McDonald’s three times a week for somebody her age is a good idea. But be that as it may, she says she loves McDonald’s. She said the McDonald’s near her in Florida is actually closed three days a week. The reason why it’s closed is because they don’t have workers. They can’t find people to fill the jobs, so they’re closed three days a week. Therefore, that store is not making as much money as it could.
If you extrapolate that scenario across the entire economy, you can see how that is holding us back. Companies are pulling their hair out trying to figure out how to get people to come back to work and get things going. Again, we believe that as the government stimulus, money expires, and the rent subsidies expire—all those kinds of things—that people will start going back to work because they’ll have to. When that happens, we think we’ll start seeing the economy get going again.
We don’t like this word very much, but we’re going to use it right now anyway—the job situation is “transitory.” We believe that we are going to continue to see the market climb higher through the rest of this year—not as fast as the first half of the year, but we believe we’re going to see new all-time highs. We just think they’re going to be small ones—tiny steps forward—but still new all-time highs. No big, giant steps like we saw in the beginning of this year. However, the outlook still looks good in our eyes. We’re still optimistic.
But again, if this variant does takes off, and the floods from Hurricane Ida don’t harm the economy—they certainly hurt the people that are affected—but the economy seems to be okay. But this is all one of those “you don’t know what you don’t know” situations. So, if something comes along that we didn’t foresee, then the whole picture could change. For now, what we do know is that these things appear to be transient, and we should march on.
Having said all of that, as you guys know, we always have our eye on the exit. We always have our eye on protecting our clients from bad things. We will do that should we see bad things coming—so we hope that gives you peace of mind. Our goal is for you to have financial peace of mind.
We hope you’re enjoying your summer and that it has been like your second childhood without parental supervision for you. Maybe you’ve gone outside a little bit and done some things, and hopefully that’s all working very well for you. From the bottom of our hearts, we thank you for being a client and for the trust that you’ve placed in us. We are eternally grateful, and we will do everything we can do every day to earn it. We will not ever take you for granted!
Thank you for watching this video, and we will talk soon.