Atlas Market Outlook – January 1st, 2021

Money Management Newsletter & More

Atlas Market Report
January 1st, 2021
Market Commentary (Key items you need to know):
  • Market Outlook by Ronald E. Lang
  • 2021 Market Outlook Report (by Request Only)
  • Market Thoughts by Allen B. Lang
  • Fun Links (always popular and NEW)
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Key items you need to know –
Happy New Year! Happy, healthy and safe is what we all want. We have a new administration coming in on January 20th, 2021 and those political winds will certainly affect all of us, both positively and negatively depending on how you view specific regulation and more possible tax changes. More importantly is now the economy and hopefully the pro-business ideas that the new administration will have and the positive effect it will have across all of our businesses and population. As you know we are not political in our writings as far as views, but we do want to comment on the “impact” that policies, laws and regulations may have on you.
Moving forward into 2021 we see more upside in the economy and markets, but a lot of that depends on three things; Political policies, the hope that more than 75% of the population takes the vaccine and the COVID strain doesn’t mutate into something worse that another vaccine will need to be developed. This should make common sense to all, but through hundreds of conversations throughout 2020, it’s amazing the take so many different people have on the COVID situation and the effects on the population.
As more businesses move to more normal operations in the 2nd Half of the year, more consumer’s will spend, especially at restaurants and vacation locations. This will put more people back to work and off government assistance. The net result of that level of consumer spending will push the markets up even further to catch up to many stocks that were able to thrive during 2020. Remember, the consumer is more than 70% of our economy and we need the vaccine to work and those businesses that were hurt the most to return to normalcy in order for the markets to maintain its valuation and go higher. Obviously we are being positive, but we are also relying on people pulling together and believing in the vaccine, but still being smart with masks, hygiene and social distancing.
We have put together a comprehensive “2021 Market Outlook” which you can request further down in the newsletter. This is where we have put together more insight, deeper thoughts and investment ideas to consider.
Click Here for 2021 Tax Planning Strategies – Courtesy of BrinkerSimpson Accountants
In Summary
Probably the most important sage advice we can give is, “be positive”. Most people feel we have turned a corner with COVID and you need to focus on your current job and you and your family’s future. Depending on your Life Stage and Risk Profile, you may want to consider shifting some of your portfolio to more conservative assets because volatility will return in 2021. Expect several 5%-8% pullbacks and potentially 1-2 10%+ pullbacks. Be smart with your outlook over the next 3+ years as your Life Stage should dictate your allocation from Growth and Value oriented assets.
Be well, stay safe and healthy!
Authored by
Ronald E. Lang, Principal
Atlas Wealth Management, LLC
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2021 Market Outlook Report
These are the topics included in this free report:
  • 2020 Year-in-Review
  • Thoughts on COVID-19 in 2021
  • Industries and Sectors (which will perform and which will underperform)
  • Portfolio Allocation and Changes Related to Risk
  • Overall Outlook for 2021 and Stocks in General
  • Last Thoughts on Investing in 2021

Is now available “by Request Only”

Submitted by Allen B. Lang, Senior Portfolio Manager
February 10th, 2020 the Dow Jones Averages hit a new high. Twenty five days later. The Dow average was down about 35%. Nine months later (12/17) the Dow hit a record 30,303.
In the interim between February and December we were devastated by a virus that infected millions of people and killed over 300,000. Serums were scientifically developed in record time and is now In route to locations for all to get shots.
Unemployment went from “full” (less than 4%) to a record 20+%. Some employers recalled employees over those interim months but some states shut down a lot of business and employment staggered.
When the Dems won the Presidency in 2008, Congress raised taxes . Coming out of a Recession, if not a Depression, after the mortgage fiasco, was not the right thing to do. And, the economic recovery took a long time to start  I hope Congress doesn’t make the same mistake in 2021. We have so many people hurting after the COVID crises that an increase in taxes will hurt more people. Our economy WILL RECOVER, and the Indexes will reflect that during 2021.
Changes to portfolios might be in order depending what Congress does during the 1st Quarter of 2020. I have always been more conservative in investments than most. Taking some risk along the way, but to a very small percentage. We review our portfolios at least once a week and make changes as necessary. We will continue to monitor economics and new bills proposed by Congress.
I have always been the eternal BULL when it comes to our stock and bond markets. AND I still am.  No market goes up all the time and conversely none goes down all the time. I expect that we will see. new highs again during the first quarter, but I also expect continued volatility. Perhaps nothing like we saw in February and March (2020), but days that may make people nervous. Stay the course!