COVID Cases Falling

Plus: A Consumer Spending Boom Coming? You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. FEBRUARY 10, 2021 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW New cases of COVID-19 in the U.S. have dropped below 100,000 for three days straight, the first time that’s happened since late October. The peak seven-day average was 245,000 on Jan. 11. This slowdown gives states a little more breathing room to push their vaccination programs forward. --------------------------------------------------------------- SPONSORED CONTENT FROM TAXSLAYER [Are Your Working From Home Expenses Deductible This Year?]( As taxpayers prepare to file their 2020 returns, they may have some new questions about how COVID-19-related changes will affect them. Here are answers to tax questions that will likely crop up. [READ MORE]( --------------------------------------------------------------- When can we expect herd immunity to occur? Currently, new vaccinations are taking place at an average of 923,000 per day, with a total of 33 million given so far. Official COVID-19 cases total 27 million so far. If we assume that those who got infected at some point but didn’t have a test to prove it are roughly three to four times the official case number, this would add another 100 million people who have antibodies to COVID-19 and could be immune. So, almost half the U.S. population could already have a degree of immunity. Herd immunity will likely occur when this percentage hits 70% to 85%, which should occur by August or September at the current vaccination rate. But the date will likely vary for different states. Those states that have done the best job in controlling infections may lag other states in achieving immunity, since they will have to rely more on vaccinations. The COVID-19 pandemic is far from over, and getting enough Americans vaccinated to bring it under control will take many months. But even before that happens, there are signs of a coming surge in consumer spending. Last year, folks who were stuck at home and unable to spend on services like travel and meals out tended to devote more of their budgets to goods, from home office gear to new cars. Now, as more people feel safer getting out of the house more often, households are likely to shift their spending to services they’ve been missing out on, according to last week’s lead story in The Kiplinger Letter. That will be especially true for affluent consumers, who tend to spend a higher share of their income on services than goods anyway, and who are now eager to catch up on the activities they’ve been missing for almost a year, like vacationing and dining in sit-down restaurants. That bodes well for all the industries tied to travel and hospitality, along with elective medical procedures that many folks put on hold last year. Even the ailing movie theater business should see an uptick. A major reason for this coming boost to spending on services: American consumers collectively have a lot of extra cash socked away in their bank accounts. How much more? About $1.6 trillion more than they would have during normal times, by the Letter’s calculations. That should fund plenty of trips to the beach once more people get vaccinated. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM SMARTASSET [7 Mistakes Everyone Makes When Hiring A Financial Advisor]( Working with a financial advisor is a crucial part of any retirement plan, but most people make these avoidable mistakes when hiring one. [READ MORE]( LATEST INVESTING NEWS FROM KIPLINGER.COM [10 Places That Will Pay You to Live There]( [How 10 Types of Retirement Income Get Taxed]( [What Are the Capital Gains Tax Rates for 2020 and 2021?]( [Congress Moves Forward with Minimum Wage Increase]( [Sign Up Free for Kiplinger's Retirement E-Newsletter to Plan for and Make the Most of a Richly Rewarding Retirement]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2021 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.