2021 Economic Outlook

A Long-Range Economic Look at the Year 2021


Economy


In the U.S., shutdowns, partial shutdowns, shifting work patterns and home life have created many hurdles. The steep recovery after the severe drop showed the economy is resilient and has a strong foundation.






Stocks


2020 has been unrivaled with the fastest drop in stock prices, the shortest recovery period, the most oversized stimulus packages, and the biggest economic shut down in history. All this because of a virus called COVID-19.






Bonds


As COVID-19 hit the United States in early 2020, fear not only entered our homes, but also the financial markets. Investors flocked to the ‘Full Faith and Credit’ of U.S. Treasury bonds.


About The Speakers

Economy
Neil Craft
Client Relationship Manager

Trent D. Dysert, CFA
Associate Director of Research, Assistant Vice President, Portfolio Manager
Investment Committee Member

Stocks
Neil Craft
Client Relationship Manager

David W. James, CFA
Senior Vice President, Director of Research, Portfolio Manager
Senior Investment Committee Member

Bonds
Neil Craft
Client Relationship Manager

Brian P. Shepardson, CFA, CIC
First Vice President and Portfolio Manager
Secretary and Assistant Treasurer James Advantage Funds
Investment Committee Member

Definitions

Black Swan: Risks related to an event or occurrence that deviates beyond what is normally expected of a situation and is extremely difficult to predict.
Basis Point: One hundredth of one percent, used chiefly in expressing differences of interest rates.
PPP: Paycheck Protection Program

Recent Podcasts

Economic Outlook 2023

Inflation

Medicare Plans

Social Security & Cost of Living Adjustment

Intro To Wealth Management

1st Quarter Update - Economic Outlook 2022

Volatility; Now What?

Small Cap Outlook

New Year Planning

2022 Economic Outlook

Year-end Portfolio Checkup

3rd Quarter Update - Economic Outlook 2021

Understanding Risks In Cryptocurrency

Importance of Diversification

Challenges Facing Retirees

2nd Quarter Update - 2021 Economic Outlook

Active vs. Passive ETFs

Inflation Clarity

1st Quarter Update - 2021 Economic Outlook

Account Type Clarity

International Investing Opportunities

Choosing a Financial Advisor

Retirement Planning

2021 Economic Outlook

Investing Based on Party In Office?

Balanced

Typical Allocation Range

Equity: 40% - 70%
Fixed Income: 30% - 60%
Cash: 1% - 15%

Small, mid, and large cap stocks
Benchmark: 25% Russell 1000® Index , 25% Russell 2000® Index and 50% Bloomberg Barclays Aggregate U.S. Intermediate Government/Credit Bond Index

The Balanced strategy has a target range of 40% - 70% in equities, with a mix of small, mid, and large capitalization stocks. We weight the stock exposure toward the most advantageous market capitalizations based on our research.

Sector analysis in an important part of our portfolio management process. Changes in sector weightings are made based on our analysis.

We believe that having the maximum flexibility to follow our research is the key to adding value to our clients' accounts.