Succinct Summation of Week’s Events 10.2.20 (plus Making Big Purchases)

So here's the weekly summation, the main positives that the markets continue to stabilize and unemployment continues to decline.  The main negative, of course, is Trump testing positive for COVID and, unfortunately, this went to press before the news broke on Friday of his hospitalization. Since the late news tonight is that he may be sent home as early as tomorrow, suggesting they may be releasing him too early, who knows how the market might react tomorrow?  

In this New Normal of lockdowns and austerity, the bonus I'm providing this Sunday is an entertaining article about the do's and don'ts of treating ourselves to luxury items in the middle of this crisis.  The entertaining part is that it's mostly about the do's.  Enjoy.  And enjoy the week. At least the weather will be pleasant. 

Succinct Summation of Week’s Events 10.2.20

October 2, 2020 5:00pm by Barry Ritholtz

Succinct Summations for the week ending October 2nd, 2020:

Positives:

1. Markets continue to stabilize despite a host of challenging conditions;
2. Unemployment rate came in at 7.9%, below the previous 8.4%.
3. Jobless claims fell 36k w/o/w from 873k to 837k.
4. ADP Employment reports shows private payrolls at 749k in September
5. Pending home sales rose 8.8% m/o/m, above the expected increase of 3.1%.
6. Construction spending rose 1.4% m/o/m, above the expected increase of 0.7%.
7. Wholesale inventories rose 0.5% m/o/m, above the previous decrease of 0.1%.

Negatives:

1. POTUS and FLOTUS both test positive for Covid-19.
2. Trump continues to undermine Democratic process, threatens widespread civil unrest post election. First Presidential Debate “a shitshow”
3. Non-farm payrolls rose 661k m/o/m, below the expected increase of 894k.
4. Personal income fell 2.7% m/o/m, below the previous increase of 0.5%.
5. Home mortgage apps fell 2.0% w/o/w, below the previous increase of 3.0%.
6. Corporate layoffs came in at 118,804 for September, above the previous 115,762.
7. Retail inventories rose 0.8% m/o/m, below the previous increase of 1.2%.

10-4-20 BBRG: What to Consider When Making Big Purchases - The Big Picture

BBRG: What to Consider When Making Big Purchases

October 4, 2020 9:12am by Barry Ritholtz

What to Consider When Making Big Purchases
Splurging on a pricey new car can make sense if you follow a few simple rules.
Bloomberg, October 4, 2020

 

Count me out of the “Financial Independence/Retire Early” movement. I can’t imagine retiring in your 30s or 40s brings happiness or life satisfaction. Worse, the claims of the FIRE proponents do not work well for helping the average person manage their finances. Instead, they tend to be grossly exaggerated or oversimplified.

As such, I am not a fan of bold pronunciations about spending, like: Never buy a boat! Stop drinking lattes! Don’t buy a new car! They seem designed more to attract attention than impart wisdom. I prefer rational guidelines that help consumers make better spending decisions. Overbroad rules of thumb do not serve anyone’s interest, and are often wrong except at the extremes.

Consider this better approach to big-ticket purchase decisions:

1. Have a Budget.

2. Prioritize Your Purchases.

3. Don’t engage in mindless consumerism.

4. Determine Your Actual Needs:

5. Understand what will – and will not – bring you joy.

 

The full column can be seen here.