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Purpose Financial Planning

Purpose Update

7-20-20 Update

The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. It is a difficult dream for the European upper classes to interpret adequately, and too many of us ourselves have grown weary and mistrustful of it. It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position. James Truslow Adams (penned the phrase American Dream in Epic of America 1931)

 

Economic Update

The consumer is the ultimate key to an economic recovery in the U.S. The June Retail Sales report showed a higher than expected 7.5% increase month over month, however, the University of Michigan Consumer Sentiment Survey dropped in July. It is not certain, but it could be that they have reacted to the COVID19 resurging. If we get any significant roll-back in the reopening scenario, this will likely diminish consumer demand, with further layoffs possible. The market has stayed strong and appears to be counting on the next Relief package to be passed. The extended federal unemployment insurance benefits of $600 a week are due to expire this week. It has been reported that many of the check recipients were making more than they were when employed and many employers were complaining that their employees did not come back. Given this it would seem any relief package would alter the amount of benefits if they get extended. To put the importance of the extended unemployment benefits into perspective note that they represent almost 5% of the U.S. economy. A lot of attention has been paid to the fact that State and Municipal governments are in need and the package should reflect this.

Gold Update

Something that has occurred during this unique crisis is that the price of Gold has moved up considerably. Sometimes when people hear of investing in Gold, it sounds like either something that highly affluent investors or those who think things are going to get catastrophic would do. However, I have often used gold (though more often the companies that mine the gold) in portfolios as part of a well -diversified portfolio. Gold has often performed well during times of uncertainty. In fact, most every time the S&P500 moves down over 20%, Gold moves up and outperforms during the recovery. While U.S. Treasuries are thought to be the preferred ‘hedge’ for the stock market (gain value as the stock market loses), Gold could help provide this hedge as we move forward. With Treasuries yielding little, the stock market at extremely high valuations along with the Government cranking up the ‘printing press’ the precious metal could be viewed as a major asset that has no debt attached to it.

Please contact Dan Kaibel CFP at (773)466-2610 with any questions.

The opinions expressed in this email are for general information only and are not intended to provide specific advice or recommendation for any individual. To determine which investment(s) or strategies may be appropriate for you, please consult your financial advisor prior to acting. Investments and financial products can carry risk of loss including loss of principal. Past performance is not a guarantee of future results. The comments made are provided as a general source of information based on information available as of June 23, 2020 and should not be considered as investment advice or an offer or solicitations to buy and/or sell securities. Every effort has been made to ensure accuracy at the time of publication however, accuracy cannot be guaranteed.