From Financial Advisor Joe Stango: My Take: 12/7/2020

Written by Joseph Stango

Good morning,

This week will mark the first full week of trading in the month of December. December is normally tax selling season. Many individual investors begin to sell both profitable and losing positions to prepare for the 2020 tax filings that will begin on January 4th this year. Additionally, this is the time when many mutual fund managers begin locking in their gains by selling profitable positions and distributing those profits to their fund’s shareholders. Given the strong movement in the markets there is no doubt that this tradition will continue.
This week we are looking to a couple of events that are underway. Ears will be on Europe as the British government and European leaders once again try to reach an agreement on the Brits departure from the European Union.

Meanwhile, all eyes are on Washington as stimulus/relief talks resume. Over the weekend a bipartisan group of rank and file members rolled out a $908 Billion package. There is some hope that this will be a starting point for negotiations that will bring about economic relief to most Americans while helping those in nursing homes with sorely needed Personal Protection Equipment (PPE’s), and many small business who have been hardest hit. A package is long overdue and cannot come fast enough to help an economy that whose recovery seemingly flounders.

Last week it was reported that employers added 245,000 new jobs which is nearly half of what was added in October. Amazingly the unemployment rate managed to drop slightly to 6.7%. This is an added sign that our economy is not recovering as quickly as many had hoped. Many thought we would see a V shaped recovery, instead we are seeing a “square root” recovery or a check mark with a flattening out on the top.

We can be thankful thus far that our economy does not reflect that of Europe which is in a double dip recession or a W recovery. Still, our economy needs a bit of help at his point particularly at the household level.

As we begin this season of peace, joy and good will I hope you will take a moment to remember this day’s events 79 years ago. As a child growing up in the 1970’s whose father served in World War II and whose mother was a “Rosie the Riveter” working in a factory during those years, I vividly recall taking time each year to remember the “day that will live in infamy” as President Roosevelt called it. Today, with most of our World War II generation have departed us, we tend to bypass the devastation of 12/7 deferring, instead, to the tragedy of 9/11 as that was the act of war we remember. Please take a few moments today to reflect on the sacrifices of those who came before us. Let us be thankful because without them we would not be living the life that we typically enjoy.

I will be on the air this morning as I am each Monday morning. Please note the time change from 10:10 AM. We will now begin each Monday at 10:20 AM for a more in-depth discussion with Steve Noxon on WATR’s Talk of the Town. As a reminder also, I am on the air each morning with Tom Chute at 8:55 to give a two minute glimpse into the day on Wall Street. Please click on this link, www.watr.com, if you would like to listen in.
I wish you a season filled with hope and I offer my best wishes for a beautiful holiday season.

Sincerely,
Joseph J. Stango
Vice President - Financial Advisor
Centurion Wealth Management
A private wealth advisory practice of Ameriprise Financial Services, Inc.

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