3 Keys to the Week - March 19, 2021

This week brought several pieces of optimistic news. President Biden officially signed the new stimulus bill into effect, Fed Chairman Jerome Powell offered encouraging news on economic growth and interest rates, and many major cities continued to accelerate reopening efforts.


Stimulus Package – President Biden officially signed the American Rescue Plan of 2021 into law. The $1.9 trillion stimulus package provides $1,400 stimulus checks for qualifying Americans, extends unemployment benefits through September, and provides additional funding for housing assistance. While many experts are concerned that a relief plan of this magnitude will lead to future inflation, White House Press Secretary Jen Psaki stated that “The risk of doing too little to help American families outweighed the risk of doing too much”. In the near-term, additional money in the pockets of consumers, paired with a re-opening economy, bodes well for many industries.



Federal Reserve – Federal Reserve Chairman Jerome Powell announced that The Fed has ramped up its expectations for economic growth, increasing GDP growth projections, and decreasing unemployment estimates. Additionally, Powell indicated that The Fed anticipates inflation slightly above 2% in the near-term, with the rate settling in around 2% in subsequent years. The Chairman also indicated that there are no interest rate hikes likely through 2023, despite the improving outlook.


Economic Re-Opening – Many major cities are beginning to fully embrace the economic re-opening, as New York announced many changes, including:

  • Restaurants opening up to 50% capacity

  • Baseball stadiums opening at 20% capacity

  • Live concerts beginning April 1st

Additionally, Las Vegas casinos increased capacity from 35% to 50% this week. These re-openings offer increasing opportunities for the American public to put their stimulus checks to work.



IMPORTANT DISCLOSURES

Investment advice offered through Strauss Financial Group, Inc., a Registered Investment Advisor.

These materials, opinions, analyses and information are provided for general informational purposes only based upon sources believed to be reliable and in good faith—but are not considered all-inclusive, and no representation or warranty of any kind, expressed or implied, is made concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no obligation to update such opinions, analysis or information, and no warranty or guarantee is made. The information in these materials may change at any time and without notice. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Please consult your attorney and/or accountant regarding legal and tax issues. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

Prices, quotes, rates and yields are subject to change without notice. Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.


Investment advice offered through Strauss Financial Group, Inc., a Registered Investment Advisor.

Data sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates).

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indices listed are unmanaged and are not available for direct investment.