Happy Labor Day! We hope you can safely connect with friends and family while enjoying the last days of summer. Personally, the coming of Fall is welcomed and one of my favorite seasons. Like the changing leaves ahead, our focus is on the potential “changes” we may see on the pandemic side, political front, and economic recovery. Fun times, right!!???
We have begun to see some cracks in the technology bubble this week and honestly, long over-due in my opinion. The strength and resiliency the market has shown over the last few months has truly been amazing. We need a “cooling” off period and a pullback in the market is a natural occurrence after the rapid run-up we have seen. It is important to stop and catch our breath from time to time.
Today the August employment data showed that the overall unemployment rate had dropped to 8.4% from 10.2% in July. This was much better than expected and was led by strength in the retail, education and health services sectors. Further signs that people are indeed returning to work. Another encouraging sign today was from the Transportation Security Administration. Labor Day travel looks to be at the strongest levels seen since before the pandemic shut things down. Our nation’s airports and roadways are beginning to return to normal. The one concern for the coming week will be how the Covid numbers look coming out of the long weekend. We already know that with our children returning to schools in many States that the numbers have sharply increased. What will these numbers look like after more “community” gatherings occur? One thing is certain on that front. We are better prepared now than previously, and the “fears” associated with contracting Covid seem to be lower now, as a vaccine appears closer to a reality.
Take some time to enjoy the outdoors this weekend, or simply have a nice BBQ with family. Let us focus on the market, that’s our job as your trusted fiduciary! Stay safe.