This Monday, we’re trying something different to jump-start your week.
We’re sharing three key headlines shaping the market. We’ll give you our take on what’s ahead — and one trade you can make today to take advantage of it. And be sure to check out one important question we have for you below.
This week, we see investors continuing to be optimistic for the long run as the economy reopens. Here’s what it all means for an America 2.0 boom and your portfolio…
3 Headlines for the Week: Economic Recovery Rules the Day?
Takeaway: More than 175 million Americans have gotten at least one dose of the vaccine. And over the last week, an average of 3.1 million doses were administered each day. Most states have already widened eligibility to include those age 16 and older. And by April 19, that should increase to include all states.
Now, real-world studies are showing stellar results, with most of the vaccines protecting 90% of patients. And the Centers for Disease Control and Prevention says that those who are fully vaccinated can start attending gatherings and traveling with relatively low risk. Of course, taking precautions is still highly advised. But as more people are able to get the vaccine and go out, we’re likely to see an economic boom that could last for a while.
Takeaway: The Labor Department reported that job growth increased at its fastest pace since last summer. Nonfarm payrolls increased by 916,000 during March. This beat analyst expectations for the month by over 250,000. That’s no small feat, and it’s happening as vaccinations are ramping up.
Many are taking this as a sign that the economy is finally beginning to heal. A lot of people are getting back into the workforce. And this recovery will continue as restrictions are lifted. But beyond the rosy outlook, there are still other aspects to consider…
Takeaway: This may seem contradictory at first … since the broader jobs market saw incredible gains over the entire month of March. But on a week-by-week basis, the numbers show that there are still hundreds of thousands of Americans struggling.
In the final week of March, the number of Americans applying for unemployment benefits increased, despite the overall jobs gains. This points to something we’ve been talking about for a while. America’s economic recovery is going to take two tracks. Not all market segments will recover equally.
And here’s what that means for investors like you…
1 Way to Profit: Going All-In on Tech
We’ve told you which businesses are most likely to fail to rebound even after restrictions are lifted: movie theaters, airlines, restaurants and retailers without an online presence. And it’s already happening…
Airlines had a rough Easter weekend, despite increasing demand for travel. Delta was forced to cancel almost 100 flights due to a pilot shortage. And United is now scrambling to find pilots to hire.
Restaurants are feeling a similar pain. As people go back outside, demand is increasing, but they’re having trouble rising to the occasion. Many restaurant execs are complaining of staffing shortages. One even told Reuters that it’s “a total nightmare” right now.
But in the meantime, other companies will not only survive, but thrive even more throughout increased consumer demands. These are ones that have adapted and scaled through the use of online technology.
As Alpha Investor founder Charles Mizrahi said last October:
People need technology to work and keep themselves entertained from home… And they need to be able to buy products online…
Tech isn’t going away. It’s constantly transforming and improving the way we work, learn and interact… Plus, e-commerce will continue to grow as consumer habits shift permanently toward the convenience of shopping online.
E-commerce sales hit over $245 billion in the fourth quarter of 2020 alone. And during that time, more than $1 of every $5 spent on retail purchases was thanks to online orders.
Tech will keep leading the way — helping all sectors, not just retail. And to gain broad exposure to tech-based firms, you can consider a position in the Invesco QQQ ETF (Nasdaq: QQQ).
This exchange-traded fund (ETF) tracks 100 of the tech-heavy Nasdaq’s largest companies, including Apple, Microsoft and Amazon. These are the kinds of stocks that’ll lead the way in our post-pandemic future.
Tech stocks have been rallying lately. In fact, the Nasdaq saw a huge rebound in the last few weeks. And this trend will continue as the America 2.0 recovery gets underway.
1 Question for You
We’re always looking for the best opportunities to help you grow your retirement. And we can only do that when we know what your financial goals and interests are. So, we want to hear from you!
What would you like to hear more on from us in this new format? Stocks and options trades that take advantage of mispricings in the market are our bread and butter. But we want to make sure we bring you the best research we can.
And perhaps you’re looking into alternative assets like cryptos. Or maybe you’re also looking into commodities or real estate. Whatever it may be, let us know what you think of our new Monday issue — and what you’d like to see in it — by writing in right here.
Senior Managing Editor, American Investor Today