October 12, 2020
Dear Clients/Partners/Prospects:
What a strange summer it was in 2020. The pandemic continuing to run wild in some areas with surging cases, people trying to figure out whether to leave the house or even consider road trips for vacations, and the in-school learning vs. virtual learning experiment starting for many working households with children this fall. Tough times for many, many families with both concerns for finding gainful employment and questioning the rationale of safety measures to go back to an office setting. Working from home was going to be a temporary working scenario for many corporations and employers but it may be longer term or permanent. As many adapt to this ‘new normal,’ commercial building owners may be in for some very tough times. Corporations are considering releasing large amounts of office space that will save them some very large dollars in fixed costs for rent. This will help them keep people working and impact their profit margins drastically.
Economically we are doing just ok. The September jobs report came in at 661,000 added, which was below the 800,000 expected. Unemployment came in at 7.9%, which was better than the 8.2% expected. Unemployed workers and their families are still hurting, and the pain is real as the coronavirus bonus came to and end for many. Will we see another stimulus? It now appears that if it materializes, it will be post-election in November 2020 or later.
The markets have been unbelievably resilient throughout the pandemic so far. We keep hearing that it has to come to an end, but it is not slowing down quite yet. It seems there is some meat left on the bone for this run back up with the markets and we are confident this will continue through the end of the year. Election years historically are strong years for the market, but this year was unique due to all the other events that transpired throughout 2020. We think that the volatility with the markets will continue due to the pandemic and concerns with what comes next, but we also believe that the markets are hardened and ready for whatever next happens to be. Stay the course and stay true to your strategies.
Vaccines in 2021? Hopefully, this comes sooner than later to combat COVID-19. They need to go through the proper protocols and processes, but we are hopeful this comes soon. We have positions in many of the players that are racing towards these vaccines and we are confident that one or several will be helping the entire world in becoming and staying healthy and safe.
Election 2020 is upon us. Early voting has started, and November is approaching fast. Every four years it feels like we hear how divisive the Republican and Democratic parties are. Every four years we also seem to elect a President and move past it. This year’s election will be no different. It may be contested but it will play out because it must. Consider what we have dealt with in this country over the past six months. We have had rioting, looting and violence here in Minneapolis, Portland and other major cities. People have been shot, injured and killed over freedom of speech and questionable other agendas. We have become familiar with terms such as: ANTIFA, BLM, Proud Boys and the ‘Great Reset.’ Divisive may be an understatement. We are traveling down a scary, treacherous path in the United States and we the people need to make sure we choose the correct path. The great thing about our nation is your ability to ‘Vote’. If you are not happy with the way our country is going, get out there and vote! Whether you support the Republican Party, Democratic Party or are Independent, this is your chance to speak your mind and do your part. This is the American way and the way we speak our minds.
Sincerely,
J.B. L’Esperance, ChFC