Why You Must Watch This 1 Thing As The Holidays Approach
With coronavirus cases exploding in the United States, India, and Europe again, to the still contentious but mostly over election, to the fast approaching holidays, and everything else that’s going on…
Things are nuts.
Today I want to give you clarity and show Why You Must Watch This 1 Thing As Holidays Approach this week.
- Third Quarter Earnings Continue
Third quarter earnings began reporting weeks ago. And this week is another big one 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 retail sales.
2. Retail Sales – Released on August 14th.
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.
Will this continue now that cases are spiking again?
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 17th will show us what retail sales were in October… And may also give us an idea on the above unanswered questions.
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…
- Should You Buy Cummins (CMI) After Earnings?
- 1 More Reason To Avoid Kraft Heinz After Earnings
- 1 Reason To Avoid Philip Morris (PM) And Its 6.7% Dividend
- Should You Keep Avoiding This 6.6% Dividend?
- Is D.R. Horton (DHI) A Buy After Reaching Its All Time High?
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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.