5 Things To Watch This Week


With massive uncertainty everywhere from the economy, to the coronavirus, to politics, to the protests and riots… 

Today, I want to give you some clarity on 5 Things Watch This Week that will affect your portfolio and the economy…

  1. Earnings Season Continues To Roll On

Earnings season is here in full affect and companies are reporting generally poor earnings in the 2nd quarter of 2020.

This was expected due to the lockdowns and quarantines and overall lack of people doing things, buying stuff, and going places.

Why?

Because an estimated 70% of United States economic output is based on consumer spending.

So far banks, oil companies, restaurants, hotels, airlines, and car companies all appear to be big losers of this earnings season.

And tech companies and food producers and sellers appear to be the biggest winners.

Here are some of the most important earnings to watch for this week…  Including several industries and stocks we’ve already told you to avoid.

Among many others.

I’ll keep you up to date on what these mean – if anything important – to the long-term prospects of the companies we’ve written about.

You can find links to these recommendations at the end of this message.

Seeing quarterly and yearly earnings helps me understand what’s going on in the market via individual stocks… And this helps me spot potential trends to take advantage of and trouble areas to watch out for so I can let you know about them.

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 as above… To help spot potential trends you can and should take advantage of.  And, to help you avoid potential major problem areas.

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

2. Housing Starts and Building Permits

This will be important to see because it will show if people are still buying houses.  If they are that’s a good sign for the economy.  If they’ve slowed down, it’s a bad sign for the economy.

Why?

Because if this slows significantly it means people either don’t have the money to buy a house due to unemployment issues.  Or that banks aren’t lending as much to people to buy houses.

Neither is good for the economy.

If the opposite of this is true and housing permits and starts are still rising that’s a promising sign of economic recovery.

3. Initial Jobless Claims – Released on August 20th, 2020 

Pay attention to the trend.

From March until about June this number declined on a weekly basis… Even though the absolute numbers were still horrific.  The decline was a great sign we were headed in the right direction in terms of employment.

Then when the coronavirus cases began exploding it started rising again on a weekly basis.

But last week this fell below 1 million jobs losses for the first time since March 2020.

If the trend continues down this week, that’s a great sign of economic recovery.

If it goes back up it’s a sign the recovery may be stalling.

Again, the trend here will be more important than the absolute number.  And I’ll keep you up to date on this in the coming weeks.

4. Continuing Jobless Claims – Released on August 20th, 2020

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

But a further note on this one is that this is the number of people still receiving federal and state unemployment benefits each week.

This amount fell slightly last week which is a good first sign of an economic recovery.

But again, the trend here is more important than the absolute numbers.

If this keeps going down this week, it’s a good sign the economy is recovering.

If it raises again it’s a sign the recovery is stalling.

You want to see this go down significantly over time because that means more people are back working.

Especially with a current estimated unemployment north of 30 million Americans.

And that’s a good sign not just for people and their families.  But also, for the entire economy.

5. Existing Home Sales – Release on August 21st, 2020

This is important for the same reasons as the housing starts above…

It’s important to see because it will show if people are still buying and selling houses.  If they are that’s a good sign for the economy.  If they’ve slowed down, it’s a bad sign for the economy.

Why?

Because if this slows significantly it means people either don’t have the money to buy a house due to unemployment issues.  Or that banks aren’t lending as much to people to buy houses.

Neither is good for the economy.

If the opposite of this is true and housing permits and starts are still rising that’s a promising sign of economic recovery.

These are some of the biggest things to pay attention to in the market this week.  And they’ll affect everything from your personal job and spending… To your retirement portfolio… To the entire economy.

And here’s a brief recap of the major news from last week that affects stocks we’ve written about.

Click the links below to see the stocks we recommend helping Depression Proof Your Portfolio.

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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