Spring market & economic update
March 12, 2021
Client
Many of you have requested information on how the Biden administration's economic policies may affect the markets and your portfolios. It can be easy to overlook the nation’s solid economic fundamentals when the media publishes sensational stories. But a recent survey by The Wall Street Journal showed that economists are upbeat about 2021.1 Here’s a summary:

  • Increased projected economic expansion. Economists now expect the economy to expand by 4.9% this year (vs. their January estimate of 4.3%) due to the distribution of COVID-19 vaccinations and the prospect of additional fiscal relief.
  • They are less optimistic about employment. The group expects 4.8 million jobs to be added this year (vs. their 5 million January forecast) due to ongoing worry that industries such as leisure, airlines, and restaurants will continue to lag.
  • Brace for higher inflation. They project a 2.8% increase in consumer prices in June 2021 compared with a year earlier. 
  • Decreased chance of an economic downturn. The economists believe there is a 17.5% chance of an economic downturn in the next 12 months (vs. their January estimate of 21.2%). Vaccines and the prospect for new federal spending are driving the optimism.

To address these and other pressing topics, we're hosting an online webinar at the end of April. We are in the process of finalizing the date and will send a save the date in the coming weeks. As always, feel free to reach out with any questions or concerns.

Warm regards,
To help keep you informed until our webinar, we compiled some helpful resources (for readers and listeners) below. If you have other favorite economic podcasts, feel free to share them with our team. We're always looking for new ways to stay informed!

SEI Investments
"The Biden Administration unveiled the American Rescue Plan. . . intended to keep the U.S. economy afloat by limiting the economic fallout from the COVID-19 pandemic."

The New York Times Magazine
"In public and private, Biden and his advisers have signaled some dramatic interventions to revive U.S. manufacturing. Will they actually happen?"

International Monetary Fund Podcast ~13 min
"The IMF's Global Financial Stability Report. . . [notes that] while the vaccine rollout has boosted hopes of a recovery this year, there are still difficult times ahead."

Macro Musings Podcast ~50 min
The chief US financial economist at Oxford Economics discusses "prospects for Fed policy and personnel under the Biden Administration, immediate concerns facing the Fed. . . and much more." 

Freakonomics Podcast ~47 min
"The incoming president argues that the economy and the environment are deeply connected." Later in the podcast, there are some great points about the benefits of Environmental, Social and Governance (ESG) investing and how it enhances returns.

SEI Podcast ~24 min
"Dean Mioli and Steve Wittenberg join Leslie Wojcik to talk tax planning in preparation for the 2021 tax season. Listen as they share their thoughts and ideas on potential legislation that could affect tax payer’s planning decisions."

Capital Group
"President Biden’s policy agenda got a significant boost from Georgia voters. Large tax increases still look like an uphill climb, but no longer appear impossible. Technology companies are likely to face more regulatory risk."
‌
[1] The Wall Street Journal, February 11, 2021
[2] S&P Global Market Intelligence, September 21, 2020
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Diversification does not guarantee profit nor is it guaranteed to protect assets.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies. 
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative, 
Broker dealer or Investment Advisor and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information.
By clicking on these links, you will leave our server, as the links are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site. 
The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.