We skipped the Friday addition for the Christmas and New Years Holiday, but we are back with some ideas for you to consider outside just your bank stock portfolio.
I have been focusing a lot on income-generating investments in these special editions. That's because I think that's where the most significant opportunity is right now for longer-term investors. Cash producing assets are highly likely to outperform high multiple growth stories over the next few years. The 2020 performance of some of these tech stocks will be challenging to replicate, and I anticipate backing and fulfilling in some of these names.
I read the latest macro update from Henry McVey and his team over at KKR during the break. McVey is a clear thinker who has been right about the economy and markets a lot more than he has been wrong, so I make it a point to read his updates when they come out.
One key takeaway is that he expects a combination of pent demand from consumers exploding in the second half of the year, along with increased government spending and stimulus will combine to push the economy to 5% GDP growth year over year.
That growth could mean that longer-term interest rates have finally bottomed and will begin what could be a decades-long march back toward normality.
I think that probably right with the caveat that I think the bulk of the growth occurs in the second half of the year.
With 19 million people receiving unemployment benefits and 35% of mom-and-pop businesses unable to pay rent in December, the stimulus in the first half of the year is merely holding off the economy's collapse until we have widespread vaccination.
The jobs report this morning paints a picture of what's going on right now. We lost jobs for ...