Updated: Jun 24
We hear that another stimulus bill is in the wind. Here's why I believe it. (All of the commentary below is my opinion. While I am not an attorney, CPA, nor tax prep professional, my years as an investor and realtor, building successful portfolios for myself and clients gives me a unique perspective.)
1. Unemployment numbers are dismal. Many of the jobs created in the last "boom" were in the service industry. Enter Covid-19 and many of those jobs are still furloughed or just not going to re-emerge because either their employer had to fold due to economic pressure or learned to stream-line business and created a new methodology. Unemployment benefits are soon to expire and Americans will need a way to stay afloat financially through possibly the end of the year.
2. This is an election year. To my knowledge, there has never in the history of American politics been an incumbent President re-elected with 8% or higher unemployment. During this economic crisis in the middle of a pandemic, we have see upwards of 14%! Those numbers must be addressed and according to the majority, if the incumbent wants a real re-election bid, he will secure bi-partisan support for a economic stimulus bill. Now, whether it's in the form of direct payments to Americans, payroll tax cuts sending working Americans home with a little more of their check, corporate tax breaks and incentives, or some combination of all of the above, it will have to happen.
3. The Fed is protecting Wall Street from collapse right now, buying govt/"junk" bonds, etc right now. That's how we saw 250 point rise yesterday. But working Americans and small business owners won't sit by and let the bailouts of 2008 happen and the vast majority go under water.
4. America doesn't want to see another crash of 2008. Period.
5. Our economy is still entrenched in globalization and too interdependent to fail. Our debt is senseless but we still have fragile hold as the world's global economic super power (but China is riding our coat-tails hard!
OK. What does all of this mean? In my opinion, it means you had better have a smart use for your stimulus.
My mantra and movement are #CreateYourOwnEconomy right?
So, I WOULDN'T LEAVE THE STIMULUS IN CASH OR IN BANK. PUT IT TO WORK!
1. Put your money to work and INVEST IN AN ONLINE BUSINESS. Brick and mortar businesses are great, but I suspect our paradigms about how we engage our customers are changing.
2. INVEST IN REAL ESTATE. There are so may strategies to create cash flow, it's ridiculous. Plus, these are tangible investments, likely with equity and tax breaks. $$$ Do you want to discuss your real estate idea? Click here to schedule a free 15 minute consultation .
3. INVEST in gold and silver. My confidence in the dollar is waning. Investing in foreign currencies with the right knowledge and skill set MAY offer yields, However, I like to take a historical approach to investing. If money's value was based on gold and silver and not "currency" (debt and credit), I think it makes sense to have these commodities as a part of your portfolio.
Hear from our advertisers.
Advertise with us! If you are an industry professional, lender, angel investor, banker, realtor or contractor, it just just makes sense to market your business or service with us. Contact us and expand your brand, reach, and return today. Click here.