The Dow Jones Industrial Average closed over 30,000 for the first time ever this week and the S&P 500 also hit a record high. Now that it is official that Joe Biden will become the next President, the transition process finally kicked into high gear with some major Cabinet appointments. Let me catch you up on the events of the week and show you a way to protect yourself against loss of income if you become disabled at work. I’m Jordan Goodman, America’s Money Answers Man and this is the Money Answers Week in Review.
The Dow Jones Industrials crossed the historic barrier of 30,000 and the S&P 500 soared to a new record for several reasons. First, investors are encouraged that three vaccines have shown more than 90% efficacy and should be approved and distributed within weeks. When that happens, investors expect the economy to rebound sharply and boost corporate earnings. The second reason is that the Federal Reserve has and will continue to pump billions of dollars into the economy as it keeps interest rates at 0%. That liquidity is moving into stocks and makes bonds and cash look like poor alternatives. Third, President elect Biden’s selection of Janet Yellin as the next Treasury Secretary has investors thinking that there will a big stimulus program and easy monetary policy for many years to come. Yellin is known as the “Queen of the Doves” for her dovish monetary policy when she was chairwoman at the Federal Reserve.
The number of new coronavirus cases is skyrocketing to 157,000 a day. There have now been over 12.3 million cases and over 257,000 deaths in America. The Gross Domestic Product grew 7.4% which is a 31.1% annual rate in the third quarter. That sounds very strong, but clearly that pace has slowed sharply lately as the surging virus is causing many governors to shut down activities in their states. One result of that slowdown is the number of initial jobless claims rose by 30,000 to 778,000 last week.
You may think you will never be hit with some kind of disability that will prevent you from earning a living. But the fact is that 25% of Americans will experience a disability in their careers sometime before retirement. The easiest way to protect yourself against this financial disaster is to get a disability insurance policy which will pay you most of your salary while you are not able to work. My affiliate Breeze lets you compare all of the disability policies that you can qualify for. You can pick what premium to pay and how quickly payments kick in after you file a disability claim. To find out more, click on the link for Breeze in the video description.
I want you to have the tools and knowledge to navigate these very tricky times so you can improve your personal finances. I’m Jordan Goodman and this has been the Money Answers Week in Review for the week of November 27.