2nd Quarter 2021 Market Outlook

Not since I convinced my parents to let me go to Spring Break 1994 have I been so so excited about spring!  Likely the most entertaining part of it all is that the same styles are around from that era.  Right in line with the early 1990’s, the economy is showing strong signs of coming roaring back, much as the stock market predicted and Federal spending and low interest rates have have led to more inflation conversations than I have had in the past 5 years combined.  Throughout the pandemic, savings rates have soared and pent up demand looks to be prepared to spend.  

We are excited to announce that our office is going to be fully vaccinated and accepting clients in the coming weeks.  We will continue to follow all CDC guidance to keep our clients safe and we are respectful of everyone’s preferences as well as offering Zoom reviews for those who prefer to meet that way.  We may ask about your preferences prior to our meeting.

On the Personal Side:

For Valentines Day, being the romantic I am I dialed up 40 degree rainy weather for our move around the corner.  Evan displayed how much better shape she is in and I grunted a lot and we got moved in to our new home.  

Fly fishing has always intrigued me and I jumped at the invite to go to the Mitchell River with my brother-in-law Chip.  The one trout I caught was not anything to brag about but the experience has me fully intrigued.  Since then, the pond behind our house has provided a good amount of practice and even more relaxation in between the time spent untangling lines.  By far the best part of fishing in the pond is that the girls will come out and spend some time with their dorky ol’ dad.

Other than catching fish, Lila has also spent her first few days in middle school at her actual school.  The experience has left a lot to be desired according to Lila.  Remaining in one seat while masked removes the social experiences many of us experienced in middle school.  As we approach her 12th birthday next month, I am in awe of the woman she is growing into.  There are times that I even think she is another adult, then I am quickly reminded that she is still my silly kid when she requests a birthday cake that looks like a rat.

A new family tradition regular medieval-style torture sessions.  Every other night we descend on Amelia’s bright yellow new bedroom to pry her mouth open and turn the wrench on her spacer.  She takes it all in stride.  My mini-me also took it upon herself to go door-to-door introducing herself to our new neighbors.   

A less sadistic family ritual that has recently emerged is more frequent family video game use featuring Evan’s prowess with all things Super Mario.  She will kill me for saying this but she is by far the best in the family and wins the playroom battles regularly.  It is fun to spend time playing.  Since we bought Steve and Carole’s home, Evan had double duty and helped as much as she could with her parents move as well.  Basically, she has been moving houses since October with a brief break for our family to have COVID in December.

On the Business side:

For current clients who recently received this letter, we have been told that this is the last step of the long transition from Summit to Cetera and we apologize for the confusion.  There is no need to respond to the letter to maintain your current relationship with our office and there are no expenses or fees associated with the letter or changes with our relationship with you.  We are here to answer any questions that may come from the letter.    

Our office has not been immune from the effects of COVID-19.  Hollie’s last day will be April 16 as she takes on a virtual role in Veterans law in order to be home for her children more.  Prior to Hollie leaving, we hired Kam Bonn to join us to assist her.  Kam has a few years of operations experience with a firm in Winston Salem, is an NC State grad and comes with an understanding of most of our software systems.  She has already hit the ground running and I am sure you will enjoy getting to know her as much as our team has.  In the meantime, if you would like to reach her you can email her at [email protected].

For better service, we ask that you call the office directly at 336-540-9700 or to email the office at [email protected].  

We have been working hard to create a more comfortable, simplified financial planning experience.  

Social Media:

We want to connect with you more via social media.  Let’s connect on LinkedIn or Twitter at @mattloganinc ,or follow my channel on Youtube or  follow my page on Facebook. We will be posting regularly on our blog as well so be sure to check it out from time to time. 

Introductions:

While growth is important to any business, we know that our focus always needs to be on those we currently serve as we continue to work to provide a comfortable, high level of service that you expect.  In order to do that, we have decided to pause onboarding new clients until July.  We are in the process of expanding our team as service to our existing clients is always our top priority.  

Online Access:

If you have already set up your account and would like to access your accounts, click here

The Bus:

The bus is booking up a lot this spring for various reasons including birthday party celebrations and winery tours.  We do not use the bus as an economic indicator but hope you will use it for your next fun outing or let us know if we can donate it to your favorite charity auction.

Featured Blog Post:

If you have ever met with me in person, I have likely explained your “Financial Lifecycle” and shown off my ability to write upside down.  We recently did a video starring my carny hands explaining this financial 101.  Check it out here and send it along to your friends or coworkers who may have questions.

Second Quarter Outlook:

Last quarter brought continued growth for portfolios yet we saw a shift from the technology heavy companies to companies that pay dividends, such as utilities.  This shift occurred slightly sooner that we anticipated.  Emerging from COVID, we are focused on staying balanced among different industries, investments and countries.  We are also closely monitoring inflation as well as rounds of stimulus spending to help dial in our investment portfolios.  We feel that this coming quarter will be focused on vaccination numbers, government spending and pent up demand being released.  We are also cautiously watching inflation numbers and tax legislation moving forward.

COVID vaccinations are being administered at an alarming rate and those numbers are leading to travel and consumers spending again.  As of the end of the quarter, 187 million of 330 million Americans have been vaccinated.  We have been moved by clients who have been reunited with grandchildren or great grandchildren after being isolated for a full year now.    

Government spending continues to come out in waves.  Watch for infrastructure spending coming from Washington.  Only 60% of the funds approved have been spent and the remaining funds will continue to support the economy as it emerges this spring.

People are spending money again on travel.  Flights are becoming full again as restrictions are lifted and people are eager to spend some of the money saved by savings rates skyrocketing during the pandemic.  With 7% of household spending typically going to  savings, in January we had a savings rate of 20.5%.  We feel like people are ready to spend again.

For a more in depth look dive into Second Quarter 2021 Markets, click here.

Please let us know if there is anything we can do to help. 

With gratitude,

Matt Logan

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