Consumers Are Ready for Reopening
People around the globe are being vaccinated and there is a light at the end of the tunnel, driving stock investors’ enthusiasm. With Congress passing a $1.9 trillion coronavirus relief bill, consumers will have more spending power.
- Both economists and investors are optimistic as the world population is being vaccinated.
- Savings rates in the United States hit all-time highs and remain elevated, so when the restrictions are lifted, consumers may be ready to spend.
- The stock market is forward-looking and much of this optimism may already be factored in.
- Risks remain elevated as bond investors are driving up bond yields, which increase borrowing costs for corporations and hurt stocks, especially technology stocks.
- We continue to recommend diversifying across and within asset classes, along with a focus on long-term objectives and not getting caught up in day-to-day fluctuations and noise.
The Market Outlook is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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