Week Ending November 6, 2020
2020 Election… It took all week for the media to call the election and there are still votes outstanding and questions concerning certain states.
What does it mean – We have been here before. Be patient and keep focused on what you can control. Under the Constitution, the legislature of each state determines how its electors are chosen and who won the election in each state. Expect emotions to run high. We are all Americans, so smile, have patience and enjoy your neighbor regardless of political affiliation. Due to Covid, you may have not interacted with them. They may be waiting for an opportunity to reconnect. Be your best regardless.
History is wise…Think about this: Two farmers living in Iowa each cast their vote differently on the same day. Do you think those farmers in Iowa stopped everything to wait for the results that took on average over a month to get? No, they carried on tending to their farms, helping their neighbors, going to church, educating their children, growing the economy, feeding the country focusing on what they can control and living for the moment. Chances are they where way more in tune with life and with what was around them than in the media. Do not get trapped by the noise, we have the constitution that was built for this. It is designed to secure our individual liberties and protect the rule of law. Disconnect the device. Turn off the TV and go for a walk. Say hi to your neighbor no matter what sign they had in their yard. We are Americans.
E pluribus unum.
Vaccine… Pfizer makes huge announcement. According to Pfizer, their trials showed a 90% effective rate.
What does it mean – Historically, the FDA has looked for an effective rate of 50%. If Pfizer, and other manufacturers can deliver and distribute into the population, this will give many people the confidence to travel and get back to normal. Timing is everything and hopefully we get this behind us.
Unemployment… Down to 6.9%
What does it mean – Another great week for our economy and the job market.
Wages… Weekly earnings up from 1025.21 to 1026.60.
What does it mean – Year over year, weekly wages are up 5.68%. With all the bad news and self-inflicted wounds, we caused due to COVID-19, wages are still going up. Ask yourself Why? What has caused this and what is causing the inflation in wages?
Housing Starts… Month over Month housing starts are up 1.95%.
What does that mean – The long-term average has been about .32%. We are seeing heavy demand for new homes in the burbs and a migration from the big cities. We have discussed this in length and the trend continues.
Gas prices… Retail gas prices dropped to $2.204 nationwide.
What it means – Year over year you have seen an 18.13% drop in gas prices at the pump. With less people driving and flying and inventory still above the current usage this can continue for a few more months. Yet, if we have a successful development and deployment of a vaccine, expect prices to go up as we get back to a normal economy.
Have a wonderful week,
Doug De Groote, CFP®, MBA, CTC