Daily Covid cases have jumped and many state officials have introduced new restrictions, which is beginning to have an impact on the economy.
In November, retail sales fell 1.1%. Ex-autos, sales were down 0.9%. As Figure 1 illustrates, sales came roaring back earlier in the year thanks to generous jobless benefits, $1,200 stimulus checks, job growth, and the re-opening of businesses.
Assuming we don’t see a steep pullback in stocks over the last two weeks of December, the major averages will finish higher for the year.
Let’s look ahead. What might influence shares next year?
The National Bureau of Economic Research (NBER) is a private, non-profit, non-partisan organization dedicated to conducting economic research. Why do we care? It is the official arbiter of economic recessions and expansions. It celebrated its 100th birthday this year.
As 2020 wraps up, today is the ideal time to review year-end financial planning strategies.