Broker Check

A New Look for Prosperity

February 22, 2021
Share |

Welcome 2021!  A year many of us have looked forward to with an eye towards prosperity, economic growth and a healthy confidence in the vaccine. If you have investments you are probably wondering what this year means to your portfolio and if you’re not you may be wondering how do I start.  Here are few things to think about in 2021.

Consumer confidence, job growth, and retail spending are all recovering. As the last six months of 2020 indicated, the advances in technology platforms at companies such as Amazon, Walmart, and InstaCart, fueled the at-home lives of many consumers.  The adaptability of the American consumer became evident when names such as Zoom, Door Dash, and Amazon Prime became household norms.  Cancellation of travel plans, switching to working from home, remote schools, “virtual” parties and graduations may have become our “new normal” but as 2021 progresses we will probably not see a return to our old normal but to a “hybrid normal”.    

With rising consumer demand, the business sector is also improving.  According to the Business Confidence Index, business is already higher than levels seen in 2018 and 2019. Companies that quickly pivoted to an e-commerce strategy experienced significant year over year revenue growth.  Social commerce has also been the recipient of a boost in viewership which translates into revenue as they focused on ad content.  Instagram, Twitter and Facebook have become the go to source for e-commerce shoppers.  While confidence did drop off when the pandemic began it has been on a continual rise and with consumer demand, housing starts and a strong stock market this trend should continue. 

This is all to say we have to make some assumptions for 2021.  We assume the vaccine will work, that the stimulus package will boost spending and bring jobs back, that the new year will put confidence back into the global playground and that the markets will continue to bring dividends to personal portfolios. We also assume that as our work environments change, as we begin sending our children back to school and we put 2020 in the rear view mirror we will begin looking forward to what 2021 will bring.   The markets have reacted positively to the vaccine; airlines are projecting an 80% increase in travel by mid-2021, technology experts predict that a new boom will come from mobile apps and cyber security, and we should see interest rates remain low.  The story for 2021 will be one of recovery, progress and growth.

 

 Melony Harris is a Certified Financial Planner, a Registered Investment Adviser and Member of FINRA/SIPC. Her office is located at 7112 W Jefferson Ave. Suite 107, Lakewood, CO 80235. www.wealthmanagementsimplified.com.  She can be reached at 303-985-7654. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA / SIPC, a Registered Investment Adviser. General accounting, tax preparation, and payroll processing services offered by Harris Tax & Wealth Management, PC are separate and unrelated to Commonwealth