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The Government Testified Last Week – Here’s What It Means For Your Investments This Week

The Weeks Biggest News To Watch Is…

With coronavirus cases exploding in the United States again to cities and states locking citizens down again…

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

Today I want to give you clarity and talk about how last week’s testimony from United States Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin potentially will affect your retirement portfolio going forward.

  1. Third Quarter Earnings Continue

Third quarter earnings season is now about a month old…

So far pretty much all companies are reporting better earnings than the last 2 quarters.

This makes sense because for the most part lock downs ended during the last quarter and things got back to some semblance of normal.

But now with coronavirus cases exploding and cities and states nationwide reenacting lockdowns this likely won’t continue into next quarter.

I’ll talk about this more below when I tell you what Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin said during their testimony to Congress last week.

But for now, at least, companies are reporting much better earnings which is of course great for your retirement portfolio.

This week earnings season continues with 532 companies worldwide reporting earnings… Including some big names we’ve written about in the past.

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 are the potential effects of the testimony to Congress from two important members of our government last week.

2. The Government Spoke Last Week – What It Means For Your Retirement Portfolio

Last week, both United States Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin… And something happened during their testimony that was odd.

The two disagreed – to sometimes large degrees – on the economic direction of the country… And about how badly the coronavirus will affect us going forward… And how much its effecting things now.

This is odd because normally when both The Fed Chair and Treasury Secretary speak to Congress its quite boring… And they almost 100% of the time agree with each other.

To see them diverge completely was a bit shocking.

And it briefly shook the market too.

At 10:30 AM EST the market was at 30,052 points.  Then when both began speaking it dropped the market all the way to 29,695 points before the open of the market the next day.

This was a fall of 357 points or 1.2% on the day.

While not a large problem in the long term – or even the short term because now the market is back up to 30,093 points as of this writing days later…

It illustrates the power of these two men on the market.

But markets didn’t just fall because they disagreed.

They also fell because the economy is now showing signs of slowing down as cases increase, gridlock remains over more coronavirus stimulus in Congress, and cities and states closing again.

Hiring slowed to 245,000 new jobs in November as cases spiked and lockdowns were reenacted.

This was only about half of the 500,000 jobs analysts expected to be created.  And is a terrible sign for the economy going forward as we head into Winter.

These are the most important things to watch this week.

Will cases continue exploding?

Will the fighting over the now proposed $908 billion second coronavirus stimulus remain in negotiations in Congress instead of going to those who need it?

Will there be more lockdowns that further slow the economy and hiring?

The answers to these questions in the coming weeks will help us make better investment decisions and keep your retirement portfolio safe.

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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