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4 Things Affecting Your Portfolio This Week

With coronavirus cases exploding in the United States and Europe again, to the election that’s now 8 days away, and everything else that’s going on…

Things are nuts.

Today I want to give you clarity on 4 Things Affecting Your Portfolio This Week to help you make better investment decisions… 

  1. Third Quarter Earnings Kick Off

Third quarter earnings began reporting last week.  And this week is a big one with more than 4,500 companies worldwide reporting updated earnings.

Including some big names we’ve talked about in the past.

And others.

Will tech continue to thrive?

Will restaurants, car companies, airlines, and others continue to get hammered?

Will roles reverse?

I’ll keep you updated as necessary on anything important with the economy or any company I’ve written about in the coming weeks as needed.

Seeing quarterly and yearly earnings helps me understand what’s going on in the market via individual stocks…

Another major thing to keep an eye on – especially during crazy times like now – are when the US government releases updated financial and employment data.

Why do I watch this?

For the same reasons I watch quarterly and yearly stock earnings… To help spot potential trends you can and should take advantage of.  And, to help you avoid serious issues.

Here are the important government data releases I’m watching this week.

2. Gross Domestic Product (GDP) – Releases October 29th

This is important…

Gross Domestic Product (GDP) is “the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.”

Essentially this measures whether the economy is growing or contracting and by how much.

Since the Coronavirus pandemic began in March, GDP cratered in the United States as you can see in the chart below.

And in much of the world.

Last quarters reading in the US was negative 31.4% on an annualized basis… The worst reading we’ve seen in US history… Yes, even worse than at any point during The Great Depression.

Is GDP back in positive territory and helping us climb out of this recession?

Is it still negative, meaning the economy is still contracting?

We’ll find out on October 29th.

3. Initial Jobless Claims – Releases October 29th  

Keep watching the trend…

From March-June this number declined on a weekly basis.

The absolute numbers were horrific. But the decline was a great sign we’re headed in the right direction in terms of employment.

Then when coronavirus cases began exploding in July, job losses started rising again.

Two weeks ago, these rose to the highest level since August 22nd with 898,000 job losses in the week.

Then last week these fell below 800,000 new jobs lost in a week for the first time since Mid-March.

It’s a good sign this is falling from the millions of jobs lost per week earlier in this pandemic.

But the weekly job losses are still far too high for a “solid” economic recovery because they’re still at historically elevated levels.

4. Continuing Jobless Claims – Releases October 29th 

For the same reasons as job losses above, this is also ultra-important.

But a further note on this… It’s the number of people still receiving federal and state unemployment benefits each week instead of weekly job losses.

Two weeks ago, this fell to just above 10 million continuing unemployment claims in the US.

And last week this fell again to 8.4 million.

Both are way down from the 26 million earlier this year.

The trend here so far is good.

But we still need to watch this because there are still far too many unemployed people for a “healthy” economy.

As of this writing the economy is recovering from the worst of things back in March and April… But now the recovery appears to be slowing as we head into Fall.  Especially when you look at the still massive job losses every week. 

These are the major things I’m watching this week.  I’ll keep you updated on all this going forward.

Here are the articles from the last week in case you missed any…

Use the following links to some of our recent articles to learn other ways to protect yourself and your investments in these uncertain times. 

Disclosure – Jason Rivera is a 13+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above.

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