De Groote Financial Group February 3, 2021 No Comments

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
Managing Director

De Groote Financial Group, LLC is a federally registered investment adviser that maintains a principal office in the State of California. The information contained in this message is confidential, protected from disclosure and may be legally privileged. If the reader of this message is not the intended recipient or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any disclosure, distribution, copying, or any action taken or action omitted in reliance on it, is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by replying to this message and destroy the material in its entirety, whether in electronic or hard copy format.
Disclaimer: This article is solely for informational and educational purposes only and contains information that is not appropriate for everyone. Nothing herein should be construed as the provision of personalized investment advice. This article does not provide legal, tax or accounting advice. Before making decisions with legal, tax or accounting ramifications, please consult the appropriate professionals for advice that is specific to your situation. Your experience may vary according to your individual circumstances and there is no guarantee that the views and opinions expressed herein will come to pass. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. This article should not be regarded as complete analysis of the subjects discussed.

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