New President, New Investment Decisions!

It is said that the first 100 days of a new Presidents term are potentially the most important days of their time in office. This is because, during that first 100 days, they are making all sorts of new policy changes, appointing people to positions, and generally laying out an outline of what they will try to accomplish in the coming years.

Thus far, President Joe Biden has been no different from any President before him. He has written new executive orders, made appointments, and allowed certain arms of the Federal government to have 'more' control of certain things. President Biden's actions have in some small and some large ways already affected your money.

Let's talk about a few things the President has done and how your money has been affected.

To me, one significant move President Biden has taken was appointing former Federal Reserve Chairwoman, Janet Yellen, to the Secretary of the Treasury. This appointment to me instilled faith, trust, and a lean toward dovish economic policies in the near term as the country continues to get past the economic effects of the Covid-19 pandemic. This has probably given your portfolio as a whole a mild boost higher.

More recently, the Biden administration has, in others words, 'taken the handcuffs' off the CDC. It was reported that under the Trump administration, the CDC was 'hushed' and dealt with push-back about certain recommendations they wanted to implement during the pandemic. Now that Biden is in office, the CDC quickly announced orders that required masks to be worn on all forms of public transportation, which the Trump administration apparently did not allow. More so than that, the CDC reported that it was investigating requiring a negative Covid-19 test before allowing any passenger board any domestic flight. Continue reading "New President, New Investment Decisions!"

Stay Away From These Industry Focused ETFs

The economic impact caused by governments around the world to combat the spread of Covid-19 and save lives has taken its toll on nearly every industry. However, while there are arguments to be made that most of those industries will “bounce” back in a reasonable fashion, there is one in particular that truly may never be the same. Or at the very best not until we see a truly effective treatment for Covid-19 or a vaccine.

That industry is travel and leisure-tourism. The airlines have been battered, hotel stocks have been beaten up, and if tourist attractions around the world where publicly traded companies, most of them would have likely already filed for bankruptcy (mild attempt at a joke, you will still be able to visit the Grand Canyon and the pyramids in Egypt in the future.)

But in all seriousness, how long until you will feel comfortable going to New York city and jumping in an elevator to head to the top of the Empire State building? Or even fly to Denver, to stay in a crowded Vail Resorts owned ski resort and then sit on a chair lift or gondola with strangers? How about walk around and stand in lines at an amusement park? Go to a large sporting event or music venue? Continue reading "Stay Away From These Industry Focused ETFs"