Happy New Years everyone! Coming back with your regularly scheduled newsletter after taking a few weeks off to get my taste & smell after COVID (I can personally attest to the wonders of the TikTok charred orange method).
To say last week will go down in history feels like an understatement. The insurrection at the US capitol and fallout have been dominating headlines, overshadowing the big wins Democrats made in the Senate.
Today we’re going to take a look at what we can expect from a Blue Government in the next few months, and how it will be affecting your wallets.
📰 In the Headlines
The business news stories we are watching
🏛 The Fallout Continues
We are still seeing the aftermath from the insurrection at the US Capitol last week, here are a few stories still playing out:
- While an insurrection shook Capitol Hill, the markets were ... fine
- More companies are making political moves by cutting or re-evaluating their political spending
- Parler is suing Amazon may force US Courts to come to a decision on the first amendment that they’ve been avoiding for a long time.
⛹️♀️ Bitcoin Bounces Back
- Listen to John talk break down Cryptocurrency 101, as well as the cases for and against going all in on digital currencies
- After over a month of insane growth, about $150 billion wiped off cryptocurrency market last week
- The other big risk in of Bitcoin: The tragedy of losing your password
🐊 Croc’s Take a Step Forward
The affordable sandals alternative reportedly had their best year in 2020
- Why the Pandemic Is Giving Clogs New Life
- How the company is giving back to healthcare workers
- And why they don’t plan on slowing down in 2021
🌊 Deep Blue Sea(nate)
Last Tuesday, the two republican incumbents lost their Senate seats in a historic runoff election, changing the Senate to an even 50/50 split between the two parties.
A quick civics reminder for you; when there is a tie in the Senate, the Vice President provides the deciding vote. With Kamala Harris soon to be in that role, the Democrats will control of both the Executive & Legislative branches for the first time since the 103rd congress in 1995*.
Here are 3 ways how they plan to use this power and how you can profit from it:
Another round of $2000 stimulus checks is already on the agenda. Many Americans are relying on these checks to cover their basic expenses, but for some of us we will probably be spending it on a few extra DoorDash’s and a new loungewear set. If the performance of these two consumer discretionary ETF’s after April's stimulus is any indication, the consumer discretionary spending, especially at online retailers, is in for another climb.
One of the best ways to build up your wealth long term is by acquiring capital, and current interest & inflation rates are making it one of the best times in history to finance an investment. Interest rates are currently at historic lows, and The Fed doesn’t plan any significant raises until 2023. Also, expanding the money supply leads to higher inflation, meaning the buying power of each dollar will keep declining too. The Federal Reserve is closely monitoring both these rates to keep them moderate and stable, but their work to help the economy recover is making it less risky to borrow money.
At the current rate, Social Security is projected to run out by 2035, leaving many nervous about what will happen to us, a population that keeps living longer and longer. One prominent element of Biden's early agenda will be to encourage Americans prepare for retirement, including proposals to expand 401(k) access, create tax incentives for retirement savings, and provide solutions for overpromised pension plans.
Now that his party controls both chambers of Congress, it is much more likely he will be able to make significant steps forward in these areas. We’ll be on the lookout for ways you can take advantage of these new policies and get yourself in a better position for when shuffleboard & bridge start to become your chosen activities.
Regardless of your personal politics, we all have the opportunity to benefit from the policies that will be introduced over the next 2 years. We never know how long they will be available!
Word of the Day
Consumer Discretionary Spending
(n.) Items and services people buy when they have extra money after paying for necessities. This often includes high-end retail, beauty, entertainment, hobby supplies, convenience services, and other ‘luxuries’.
**Technically, Democrats also controlled both branches during the 107th congress as well, but that only lasted for about 2 weeks.
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