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With Thanksgiving Approaching – Watch This 1 Thing This Week

With coronavirus cases exploding in the United States, India, and Europe again, to cities and states locking down again, to Thanksgiving this week, and everything else…

There’s a lot going on that affects you, the economy, and your portfolio…

Today I want to give you clarity and show – With Thanksgiving Approaching – Watch This 1 Thing This Week.

  1. Third Quarter Earnings Continue

Third quarter earnings began reporting weeks ago. And this week is another big one surprisingly with the Holiday shortened week, with more than 1,100 companies worldwide reporting updated earnings.

Will tech continue to thrive this quarter as it did in the last one?

Will restaurants, car companies, airlines, and others continue getting crushed?

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…

The other major thing you need to pay attention to this week is United States the Markit Manufacturing PMI numbers.

2. Markit Manufacturing PMI – Releases On November 23rd.

Last week I told you about how the huge spike in coronavirus cases could affect both the health of those involved…  And a tiny bit on how it could affect the economy going forward.

Let’s dig a little deeper into the potential economic effects this week.  Because they could be massive.

Here’s what I said about this last week…

We’re still recovering from the initial stages of lockdowns and panic that began in March.

Since then most lockdowns and quarantines were lifted which got people back to work, lowered the unemployment in the US and worldwide, and led to a record quarterly increase in economic output.

But Europe is already locking citizens down again in various countries including the entirety of England.

Will other parts of Europe, The United States, and the world follow suit and lock things down again?

If governments enact lockdowns again worldwide it would devastate the economy worse than the previous ones… Now businesses have even less cash and higher debt levels than in March.

And this means there’s far lower room for error, which could lead to more mass unemployment and bankruptcies.

Because 70% of the US economy is based on consumption – i.e. you and I doing and buying stuff.  This retails sales number is super important.

Retail sales dropped so much that in April 2020, they were back down to levels not seen since July 2013.

They’ve climbed slowly up since then.  And were above Pre Covid levels – in terms of absolute dollar sales at least – in September.

And then last week the latest numbers came out that showed retail sales stagnating in October with growth of only 0.3%.

Then last week new jobless claims rose as cities and states began locking things back down again.

This week we need to watch the important Markit Manufacturing PMI for more signs to see if the economic situation is deteriorating rapidly…

It’s important to watch because it shows how much companies are buying and selling services.

Any number above 50 shows economic expansion.  And any number below 50 shows economic contraction.

We saw a huge drop in March-May 2020… And then a huge rebound in June-August. And then a slight fall in September’s.  And then a slight rise in October to 53.4.

With Covid cases exploding and cities and states locking down again I want to see if this fell…

If it did, it’s a massive bad sign for the economy – especially when considering that job losses rose, and retail sales were flat.

Will this fall, and put the economy back in danger with mass closures, bankruptcies, and layoffs?

Will President Elect Joe Biden enact nationwide lockdowns when he takes office in January?

Seeing these numbers when they release on November 23rd will give us an idea of the economic direction as we head into the 2020 Holiday Season.

And speaking of the 2020 Holiday Season.

I hope you and yours have a great Thanksgiving week this week.

And thank you so much for being a reader here.

We greatly appreciate your support.

This is the major story to watch this week… To see if new cases of the coronavirus are negatively affecting a huge part of United States economic output.

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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