Second Stimulus Package? Probably Not Going To Happen...

[Daily Financial Journal]( [TODAY'S DEAL: Honestly, you should get this book](mailto:editor@dailyfinancialjournal.com?subject=Give+me+my+top+stocks+for+2020&body=Give+me+my+top+stocks+for+2020) Todays Top News [Second Stimulus Package? Probably Not Going To Happen…] Second Stimulus Package? Probably Not Going To Happen… It looks like we were all misled for the past 2 months. The likelihood of a second round of financial stimulus was nothing more than a dangling carrot waved in front of our faces to convince us that there was some hope of support for the American people. What’s causing me to reach such an extreme conclusion? If you were watching the stock market on Friday, the nonfarm payrolls report showed some surprisingly good news: Unemployment down to 8.4% from 10.2% in the previous month, with 1.4 million jobs regained in the month of August. These numbers imply that the economy isn’t in such bad shape as we may perceive it to be, and thus funding is not so desperately needed. Additionally, the numbers play into the favor of politicians who are against the high deficit spending that has taken place thus far. In the words of Veda Partner’s Director of Economic Policy Research, Henrietta Treyz: “We are formally dropping our odds of another $1.5T+ stimulus package this morning from their previous 60-75% rate to 20-30%… it is prudent for investors to position their portfolios with the assumption that no more federal stimulus will be delivered from Congress until after the November 3 election, at the earliest.” This doesn’t only affect your low-income American struggling to pay rent and afford food. Without the bill for the relief package, there won’t be any financial support for industries such as cruise lines, restaurants, or airlines. EVERYONE will be left hang to dry. And when that happens, we could see the market revert back to bearish conditions like it did in February and March. What do YOU think will happen for the rest of 2020 if we don’t get a second stimulus package? Reply to this newsletter and let us know! Investing [Even After Retirement, Over 50% of Seniors Expect to Keep Working] Even After Retirement, Over 50% of Seniors Expect to Keep Working It seems as if the old picture of “retirement” is starting to fade away. Rather than stop working altogether at the magical age of 65, an increasing amount of Americans are comfortable with working in the last few decades of their lives. According to a new study from Voya Financial: - 59% of workers expect to be working some kind of job during their retirement years - The divide is significant amongst multiple generations, with 49% of millennials and 60% of Generation X-ers agreeing Due to the ever-rising levels of uncertainty about the economy and the growing concern about financial instability, young adults are seeing the benefits of having a “back-up” plan should investments fail them due to market volatility. In addition to covering what could be perceived as unforeseen costs, many respondents saw a job as providing some sense of meaningful purpose. It certainly wouldn’t contradict the 70% of respondents who have managed to save more money during the COVID-19 pandemic. Don't Miss This [Millennials Are More Focused on Retiring than Investing] Millennials Are More Focused on Retiring than Investing Despite the rise of millennial day traders who want to become stock market heroes, the overall sentiment appears to be leaning heavily towards saving for retirement. Unlike their counterparts, most millennials are focused on starting early when it comes to their saving habits. Instead of timing the market or worrying about whether a stock in their portfolio is going up or down, they just simply make a few key investments and get on with their lives. As one financial advisor put it, it’s more about the time you spend in the market than WHEN you enter the market. As long as you focus on how often you invest and when you invest, preferably via a long-term strategy such as consistent dollar cost averaging, you should be good to go by the time you’re 65. By focusing on “saving” instead of investing, you’re directing your attention to how much you’re saving and how long you’ve been saving for. This allows you to take full advantage of the compound effect and therefore enter retirement with an ample amount of cash. [Moderna Was One of the Few Good COVID-19 Vaccine Investments] Moderna Was One of the Few Good COVID-19 Vaccine Investments Moderna still has a long way to go with its clinical trials for its COVID-19 vaccine candidate. Even when announcing their entry into the worldwide race for the first vaccine at the peak of the pandemic, their trials have shown some mixed results. But let’s play a fun little game for a second: What would have happened if you invested $10,000 of your own money into their shares at the start of March? Where would your investment be right now? Well, let’s do some quick math… The stock was at $20 at the end of February. After a lot of volatility in the month of March, it is now 15.50% above its starting point. So with a $10,000 investment, you would be at around $30,000 right now ($29,547 if you want to be exact). However, keep in mind that Moderna had some HUGE swings over the past 6 months. Very few people would have had the discipline or the emotional patience to keep holding on! [Warren Buffett Continues to Dump Even More Bank Shares from His Portfolio] Warren Buffett Continues to Dump Even More Bank Shares from His Portfolio Warren Buffett has made an unprecedented number of short-term decisions with the Berkshire Hathaway portfolio. Whether it’s dumping some of his long-term investments or entering areas he is infamous for refusing to even touch, he’s certainly kept all of Wall Street on its toes. His latest move is about to send the markets into a frenzy, as his stake in Wells Fargo has been cut by 42%. This takes their stake in the big bank from 5.96% to 3.30%, or 237.6 million shares to 136.3 million shares. At the pace he is going at, he is liquidating around 100 million shares of Wells Fargo every month or so. If he keeps it up, it will only be two more months before Buffett has entirely discarded his holdings in Wells Fargo. Which makes me wonder which bank stock he’ll end up dropping next. What bank do YOU think Buffett is going to drop from his portfolio when his hands are clean of Wells Fargo’s blood? Reply to the newsletter and let us know your prediction! [The K-Shaped Recovery: We Hate to Talk About It, but It’s Here] The K-Shaped Recovery: We Hate to Talk About It, but It’s Here We’ve heard about all kinds of economic recovery situations named after certain letters. Of all of them, “V” appears to be the most common one touted by bullish investors. Since the pandemic has started, the bulls have been hopeful that the market recovery will be as sharp and poignant as the crash itself. Alas, that’s not happening. Not anymore. What we are seeing is more like a “K” shaped recovery. Here’s the best way to put it, according to a recently published article by Barron’s: “ Now, those who hold stocks and high-paying jobs are seeing their wealth grow rapidly (the upward arm), while pretty much everyone else is forced to endure high unemployment, job insecurity, and nonexistent wage growth (the downward arm).” It’s wealth inequality all over again. While the corporate giants and wealthy individuals continue to see their finances fly to the moon, millions of Americans are pinching pennies together. Dipping through their life savings, taking on even more debt than what should be allowed, and unable to find work for themselves. This is not the recovery we want. At least not if we want to improve the health of the American economy… [Vote Now] PS. 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